Gold bar prices in Vietnam experienced a significant increase on Monday morning, tracking the global rise in bullion rates. The price of Saigon Jewelry Company’s gold bars soared by 0.32%, reaching a record high of VND156.8 million (US$5,959.48) per tael. The same increase was also seen by other financial institutions such as the lender ACB and jewelers PNJ and Doji.
Local bullion rates have seen an impressive surge of 86.2% since the beginning of the year, and are now nearly VND20 million per tael higher than the international rates. The price of gold rings also rose by 0.26%, reaching VND154 million per tael. It’s worth noting that a tael is the equivalent of 37.5 grams or 1.2 ounces.
On the global front, gold continued to make gains on Monday, bolstered by a weaker US dollar and softer Treasury yields. Investors are closely watching the upcoming U.S. jobs data for indications of the Federal Reserve’s future policy direction. Meanwhile, the price of silver, which saw a record-breaking run last week, remained steady.
Spot gold increased by 0.4% to reach $4,320.65 an ounce, marking a 64% rise so far this year. U.S. gold futures also rose, with a 0.6% gain to reach $4,354.00 an ounce.
The dollar is currently near a two-month low, which makes bullion more attractive to international buyers. Experts predict that gold is likely to continue to perform well in light of upcoming U.S. non-farm payrolls data.
Last week, the U.S. central bank implemented a 25-basis-point rate cut, a decision that was not unanimous. Two Federal Reserve officials who voted against this move argued that inflation was still too high to justify a more relaxed policy. This decision has significant implications for non-yielding assets like gold, which generally benefit from a lower interest rate environment.
How much did the Saigon Jewelry Company’s gold bar price increase?
The price of Saigon Jewelry Company’s gold bars increased by 0.32%, reaching a record high of VND156.8 million (US$5,959.48) per tael.
How is the weaker US dollar impacting the gold market?
A weaker US dollar makes bullion more attractive to buyers outside the U.S., which in turn can drive up global gold prices.
What was the impact of the U.S. central bank’s 25-basis-point rate cut?
Interest rate cuts typically benefit non-yielding assets like gold. However, the recent rate cut was a contentious decision, with dissenting officials arguing that inflation was still too high to justify easing the policy.
