Gold prices fall

Gold prices experienced a slight decline recently. The Saigon Gold Jewelry Company's gold bar price dropped by 0.21% to VND142.3 million (US$5,499.20) per tael, while gold ring prices followed suit, falling to VND140.9 million per tael. A tael is equivalent to 37.5 grams or 1.2 ounces.

On a global scale, gold prices fell for the fourth consecutive day on Wednesday. The main cause was rising oil prices, which raised inflation concerns among investors. These investors were eagerly waiting for signals from the Federal Reserve next week regarding its future interest-rate decisions.

Spot gold prices fell by 0.2% to $4,118.18 per ounce, while US gold futures for December delivery slipped by 0.2% to $4,136.20. The metal might continue to face pressure as crude prices regained their upward trend, maintaining inflationary pressures and strengthening expectations of a hawkish monetary policy from the Fed.

Bas Kooijman, CEO and asset manager of DHF Capital S.A., commented on the situation to Reuters. He noted that most economists surveyed by Reuters expect the Federal Reserve to keep interest rates unchanged this month. This is because policymakers have shown patience in dealing with the current economic conditions. However, traders were still quite confident about another rate hike later in the year, estimating its likelihood at around 85%.

This is due to inflation still being substantially higher than the central bank's 2% target, according to Bloomberg. Generally, higher interest rates tend to negatively impact gold, as the metal does not pay any interest.