Gold prices gain
In this article (5)
SJC gold price gained 0.07% to VND66.6 million ($2,808.64) per tael Thursday morning. Gold ring price went up 0.09% to VND54 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally gold prices traded in a tight range on Thursday as some investors stayed on the sidelines ahead of U.S. jobs data that could influence the Federal Reserve’s monetary policy path.
Spot gold was little changed at $1,813.39 per ounce, trading in a $5 range, after hitting its lowest since Feb. 28 on Wednesday.
Gold is considered a hedge against inflation, and interest rate hikes to control rising prices make it less attractive. Rate hikes also dim the non-yielding bullion’s appeal.
“The gold market has been muted… the market is still trying to digest where the Fed will go after Powell mentioned the final interest rates might be higher than initially expected,” said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.
Fed Chair Powell on Wednesday reaffirmed his message of higher and potentially faster interest rate hikes, but emphasized that debate was still underway with a decision hinging on data to be issued before the U.S. central bank’s policy meeting in two weeks.
Questions & Answers
Q.What is the current value of SJC gold and gold rings in Vietnam?
What is the current value of SJC gold and gold rings in Vietnam?
SJC gold is currently priced at VND66.6 million per tael, showing a 0.07% gain. Gold rings have increased by 0.09% to VND54 million per tael.
Q.How does the global gold price compare to its recent performance?
How does the global gold price compare to its recent performance?
Spot gold was little changed at $1,813.39 per ounce, trading in a narrow $5 range on Thursday. This comes after it hit its lowest price since February 28th on Wednesday.
Q.Why are global gold prices currently seeing limited movement?
Why are global gold prices currently seeing limited movement?
Global gold prices are trading within a tight range because investors are waiting for upcoming U.S. Jobs data. This data could influence the Federal Reserve’s future monetary policy decisions.
Q.What impact do interest rate hikes typically have on gold's attractiveness?
What impact do interest rate hikes typically have on gold's attractiveness?
Interest rate increases generally make gold less appealing because gold is often seen as a hedge against inflation. Higher rates also reduce the attractiveness of non-yielding assets like bullion.
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