Gold prices gain
In this article (5)
SJC gold price rose 0.22% to VND67.4 million ($2,854.72) per tael Tuesday afternoon.
Gold ring price dropped 0.18% to VND54.65 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally gold prices went up on Tuesday as the dollar retreated, with investors bracing for U.S. inflation data that could determine the Federal Reserve’s next monetary policy moves.
Spot gold was up 0.5% at $1,861.93 per ounce after falling to its lowest since early January in the previous session.
Gold is susceptible to rising interest rates, which lift the opportunity cost of holding the non-yielding asset.
“If the disinflation trend in the U.S. shows signs of slowing (even if it’s temporary), then caution over a hawkish Fed could undermine risk sentiment and gold, while USD may find further support,” said OCBC FX strategist Christopher Wong.
Questions & Answers
Q.What caused the global gold price increase on Tuesday?
What caused the global gold price increase on Tuesday?
Globally, gold prices rose as the dollar retreated. Investors were also anticipating U.S. Inflation data, which could influence the Federal Reserve's future monetary policy decisions.
Q.How much did SJC gold price change on Tuesday afternoon?
How much did SJC gold price change on Tuesday afternoon?
The SJC gold price increased by 0.22% on Tuesday afternoon. This brought its value to VND67.4 million, which is equivalent to $2,854.72 per tael.
Q.Why is gold considered susceptible to rising interest rates?
Why is gold considered susceptible to rising interest rates?
Gold is susceptible to rising interest rates because such rates increase the opportunity cost of holding the asset. As gold does not yield interest, it becomes less attractive compared to yielding investments.
Q.What is the weight equivalent of one tael?
What is the weight equivalent of one tael?
One tael is equivalent to 37.5 grams. In imperial measurements, this also translates to 1.2 ounces. This unit of weight is used for gold pricing mentioned in the article.
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