Gold prices inch up
In this article (5)
Saigon Jewelry Company gold bar price rose 0.22% to VND89.7 million ($3,522.76) per tael Monday morning.
Gold ring price increased by 0.07% to VND76.45 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices on Monday drifted higher from a two-week low hit in the previous session as traders gauged fading hopes of U.S. interest rate cuts ahead of a key inflation report due later this week.
Spot gold was up 0.5% at $2,346.31 per ounce, having touched its lowest since May 9 at $2,325.19 on Friday.
U.S. gold futures rose 0.6% to $2,347.60.
Bullion hit a record high of $2,449.89 earlier last week, but has shed more than $100 since then.
“I suspect gold can manage a small bounce from current levels before retesting the $2,280-$2,300 zone, which could see losses extended if U.S. data continues to outperform,” said City Index senior analyst Matt Simpson.
The core personal consumption expenditures price index (PCE), the U.S. Federal Reserve’s preferred inflation measure, is due on Friday.
Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
Questions & Answers
Q.What caused the global gold prices to increase on Monday?
What caused the global gold prices to increase on Monday?
Global gold prices drifted higher from a two-week low as traders evaluated diminishing expectations for U.S. Interest rate cuts. This occurred ahead of a significant inflation report scheduled for later in the week.
Q.What was the highest price gold reached last week, and how much has it fallen since then?
What was the highest price gold reached last week, and how much has it fallen since then?
Bullion reached a record high of $2,449.89 earlier last week. Since then, the price of gold has shed more than $100, indicating a notable decline from its peak.
Q.What is the anticipated movement for gold prices according to City Index senior analyst Matt Simpson?
What is the anticipated movement for gold prices according to City Index senior analyst Matt Simpson?
Matt Simpson suspects gold might see a small bounce before retesting the $2,280-$2,300 zone. He added that losses could extend if U.S. Data continues to outperform expectations.
Q.Which specific inflation report is due later this week, and why is it significant?
Which specific inflation report is due later this week, and why is it significant?
The core personal consumption expenditures price index (PCE) is due on Friday. This report is significant as it is the U.S. Federal Reserve’s preferred measure for inflation, influencing economic outlooks.
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