Gold prices gain
Vietnam's gold prices rose on Wednesday morning amid an increase in global bullion rates.
Gold prices in Vietnam surged on Wednesday, buoyed by a weaker US dollar and anticipation of Federal Reserve policy shifts. Saigon Gold Jewelry Company's gold bar price skyrocketed 0.43% to VND141.2 million (US$5,486.16) per tael, a 7.6% drop from the beginning of the year but VND17.7 million higher than global rates. Gold rings also appreciated 0.44% to VND138.3 million per tael.
Traders attribute the increase to a softer US dollar before midterm elections and investors' wait for non-farm payrolls data. Spot gold rose 0.1% to $3,931.24 per ounce, while December futures steadied at $3,941.40. Chris Weston, head of research at Pepperstone, noted that a weaker USD and falling US Treasury yields are aiding gold's ascent, with potential instability under a Trump administration driving demand for the metal.
Currently, traders foresee a 78% probability of a December Fed rate hike, as higher interest rates diminish bullion's attractiveness by raising the cost of non-yielding assets.
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