As gold prices dip in Vietnam, a contrasting trend is seen in the global market. In the latest market update, the price of gold bars from the Saigon Jewelry Company fell by 1.43% to VND131.4 million (approximately US$4,980.1) per tael. Meanwhile, local bullion prices still outstrip global ones by VND15 million per tael, a notable gap in the current economy.
Gold ring prices also took a hit, decreasing by 1.23% to VND128 million per tael. For reference, a tael weighs about 37.5 grams or 1.2 ounces, a unit familiar to both traders and collectors alike.
Globally, however, the gold market is witnessing a different dynamic. Prices edged upward on Friday, marking a potential fourth consecutive weekly gain driven by growing concerns over a weakening U.S. labor market that overshadowed inflation fears ahead of a widely anticipated Federal Reserve rate cut next week, according to Reuters.
Spot gold rose 0.5% to $3,651.92 per ounce, hovering near a record high of $3,673.95 reached earlier in the week. This week alone, bullion has appreciated by 1.8%, reflecting its resilience amid economic uncertainty. U.S. gold futures for December delivery also saw an increase, climbing 0.5% to $3,690.30.
“It’s not far off from $3,700 … so that could happen at any moment,” remarked Ryan McIntyre, managing partner at Sprott Inc. “In the short term, we see some resistance at about $3,900 according to our technical analysis, but long term, we believe it is still heavily under-owned by most institutions.” This sentiment reflects a broader trend that sees gold as a high-stakes player in the global financial game.
So far this year, gold has soared about 39%, a remarkable feat fueled by a soft dollar, robust central bank purchases, dovish economic policy, and growing global uncertainties that keep investors on their toes.
How have local gold prices in Vietnam compared to global rates?
Local gold prices have decreased, with the Saigon Jewelry Company reporting prices down by 1.43%, yet they remain VND15 million per tael higher than global prices.
What are the key factors driving the global increase in gold prices?
The increase is largely attributed to concerns over a weakening U.S. labor market, overshadowing inflation fears, as well as sustained interest from central banks and investors amid economic uncertainty.
What predictions are experts making about gold prices in the near future?
Experts suggest that gold could soon reach or surpass the $3,700 mark, with some forecasting resistance at around $3,900 in the short term, while highlighting its potential for longer-term growth due to under-ownership by institutions.
