On Friday morning, gold prices in Vietnam saw a significant rise, in sync with the worldwide increase in gold rates, marking the first weekly gain in the past five weeks. The key driver behind this surge was the gold bar price offered by Saigon Jewelry Company, which saw a leap of 2.02%, equating to VND151.4 million (US$5,756.11) per tael. For context, a tael is equivalent to either 37.5 grams or 1.2 ounces.
Over the course of the week, local gold rates have climbed by 1.9%, putting them roughly VND18 million per tael above global rates. This trend was mirrored by the price of gold rings, which increased by 2.02%, bringing it to VND151.3 million per tael on Friday.
On the global stage, Friday saw an increase of more than 1% in gold prices, setting the stage for the first weekly gain in the past five weeks. This shift has been attributed to a recalibration of investor expectations in light of less than anticipated U.S. employment figures, leading to a decrease in anticipations of Federal Reserve interest rate hikes.
Spot gold saw an increase of 1.4%, taking it to $4,179.94 per ounce, its highest value since June 23. Additionally, U.S. gold futures for August delivery saw a rise of 1.6%, bringing it to $4,193.20.
According to Kelvin Wong, a senior market analyst at OANDA, despite this uptick in gold prices, there has not been a complete revocation of rate hike pricing. He predicts that by the end of the year, there may still be another phase of potential gold weakness, with prices possibly reaching the $3,500/oz level.
The World Gold Council has reported that there has been a resumption of gold purchases by central banks. As per the most recent data, official gold reserves saw a net increase of 41 tons in May.
What factors led to the rise in gold prices in Vietnam?
The rise in gold prices in Vietnam was driven by the gold bar price offered by the Saigon Jewelry Company and the increase in the global gold rate.
What is the anticipated impact of the U.S. employment figures on gold rates?
The less than expected U.S. employment figures have led to a reduction in expectations of Federal Reserve interest rate hikes, contributing to the rise in gold prices.
What is the projected future trend for gold prices as per the senior market analyst at OANDA?
Despite the recent increase in gold prices, Kelvin Wong predicts a potential phase of gold weakness towards the end of the year, with prices potentially reaching the $3,500/oz level.
