Gold prices inch up
In this article (5)
SJC gold prices went up 0.22% to VND67.15 million per tael Tueday. Gold ring prices fell 0.09% to VND53.95 million. A tael equals 37.5 grams or 1.2 ounces.
Global spot gold increased by 0.3% at $1,791.91 per ounce as the dollar dipped, although lingering worries about further interest rate hikes from the U.S. Federal Reserve kept the non-yielding bullion’s gains in check.
European Central Bank Vice-President Luis de Guindos signaled the bank was determined to keep raising interest rates.
Investors also took stock of news that in top bullion consumer China, Covid-19 is sweeping through trading floors in Beijing and spreading fast in the financial hub of Shanghai. The country reported five new Covid deaths for December 19.
“If China brings back restrictions and if that were to happen over the holiday period, it is the perfect catalyst for large moves (in gold) to the downside,” Simpson added.
Questions & Answers
Q.What caused the global spot gold price to increase today?
What caused the global spot gold price to increase today?
Global spot gold increased as the dollar dipped. However, concerns about further interest rate hikes from the U.S. Federal Reserve limited the non-yielding bullion's gains. The European Central Bank also signalled its intent to raise rates.
Q.How did SJC gold prices in Vietnam change compared to gold ring prices?
How did SJC gold prices in Vietnam change compared to gold ring prices?
SJC gold prices increased by 0.22% to VND67.15 million per tael on Tuesday. In contrast, gold ring prices fell by 0.09% to VND53.95 million, showing a slight divergence in the local market.
Q.What is impacting investor sentiment regarding gold in China?
What is impacting investor sentiment regarding gold in China?
Investors are monitoring news from China, where Covid-19 is spreading rapidly through trading floors in Beijing and Shanghai. The country reported five new Covid deaths for December 19, raising concerns about potential new restrictions.
Q.What could cause significant downward movement in gold prices, according to the expert?
What could cause significant downward movement in gold prices, according to the expert?
According to Simpson, if China reintroduces Covid-19 restrictions, especially over the holiday period, it would be a perfect catalyst. Such measures could lead to large downward moves in gold prices, affecting the market significantly.
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