Gold prices inch up
In this article (5)
Vietnam’s SJC gold prices rose 0.74% to VND67.15 million ($2,739.14) per tael Thursday.
Gold ring prices went up 0.28% to VND54.3 mllion per tael. A tael is equal to 37.5 grams or 1.2 ounces.
Global spot gold prices went up 0.7% to $1,781.15 per ounce, a two-week high, supported by a weaker dollar after U.S. Federal Reserve Chair Jerome Powell’s speech sparked expectations of smaller interest rate hikes.
The Fed could scale back the pace of its rate hikes “as soon as December,” Powell said on Wednesday at the Brookings Institution in Washington. That pushed the dollar index 0.5% lower, making gold more attractive for overseas buyers.
Investors now turn to the U.S. Labor Department’s non-farm payrolls data due on Friday, which could influence the Fed’s policy decisions.
“A strong employment report will give Fed the green light to keep hiking while inflation remains high, which is bad for gold. A weak report could benefit gold as it points to lower consumer demand ahead, which is deflationary,” added Simpson.
Questions & Answers
Q.What specifically caused global spot gold prices to rise?
What specifically caused global spot gold prices to rise?
Global spot gold prices rose after a weaker dollar, which occurred following Jerome Powell's speech that sparked expectations of smaller interest rate hikes by the U.S. Federal Reserve.
Q.How do interest rate hikes typically affect gold's attractiveness to overseas buyers?
How do interest rate hikes typically affect gold's attractiveness to overseas buyers?
Smaller interest rate hikes weaken the dollar, making gold more attractive for overseas buyers. Conversely, a strong employment report could give the Fed a green light to keep hiking, which is bad for gold.
Q.What upcoming economic data might influence the Fed's policy and gold prices?
What upcoming economic data might influence the Fed's policy and gold prices?
The U.S. Labor Department’s non-farm payrolls data, due on Friday, could influence the Fed’s policy decisions. A strong report is bad for gold, while a weak one could benefit it.
Q.What is a 'tael' in terms of weight?
What is a 'tael' in terms of weight?
A tael is a unit of weight mentioned in the article. It is equal to 37.5 grams or 1.2 ounces.