Gold prices in Vietnam experienced a downward trend on Wednesday, continuing a 0.3% dip from earlier in the trading day. The Saigon Jewelry Company suffered a 0.67% price drop of their gold bars from the morning, bringing the total loss for the day to 1.1%. The new price for a tael of gold now stands at VND148.5 million (US$5,647.56). The price of gold rings also followed suit with a 1.1% decrease, rendering each tael to be VND148.2 million. For context, a tael is equivalent to 37.5 grams or 1.2 ounces.
On a global scale, gold prices remained relatively stable on Wednesday as investors awaited new indicators on the U.S. Federal Reserve’s interest rate projections. Renewed U.S. airstrikes on Iran raised fears that energy costs and inflation might experience an upsurge. Spot gold showed a slight increase of 0.4% to $4,123.55 per ounce after declining to its lowest since July 2 earlier in the trading day. U.S. gold futures for August delivery, however, fell by 0.5% to $4,135.
Simultaneously, oil prices surged by over 3%, with U.S. Treasury yields rising and the dollar reaching its highest value in a week. Investors were keenly waiting for the minutes of the Federal Open Market Committee’s June 16-17 meeting, set to be released later that Wednesday, for hints on the Fed’s rate path under Chair Kevin Warsh.
While gold is typically viewed as a safeguard against inflation and often sees gains during periods of geopolitical uncertainty, high interest rates usually put pressure on the non-yielding asset. Since the onset of the Iran conflict in late February, the precious metal’s value has dropped by more than a fifth.
Carsten Menke, Head of Next-Generation Research at Julius Baer Group Ltd., emphasized that the primary concern for gold and silver markets currently is whether the U.S. Federal Reserve will increase interest rates. He noted, “We do not expect the Fed to raise rates, as part of the inflationary pressure should turn out to be temporary.”
**What happened to gold prices in Vietnam on Wednesday?**
Gold prices fell, with the Saigon Jewelry Company experiencing a 0.67% decrease in their gold bars from the morning, totalling a 1.1% loss for the day.
**How has the recent geopolitical situation affected global gold prices?**
The recent U.S. airstrikes on Iran have caused some anxiety in the market, contributing to a relatively stable gold price as investors wait for fresh signals on the U.S. Federal Reserve’s interest rate outlook.
**What are experts saying about the U.S. Federal Reserve’s potential actions?**
Industry experts, such as Carsten Menke of Julius Baer Group Ltd., do not expect the U.S. Federal Reserve to raise interest rates, believing that the current inflationary pressure could be temporary.
