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Gold prices plummet from peak

By Sarah Chen
1 min read
Degussa GoldHandel
Degussa GoldHandel
In this article (5)

Vietnam gold bar price fell to VND90.2 million (US$3,524.13) per tael Wednesday morning, down 2.28% from the record high it reached the previous day.

It reached an all-time high of VND92.3 million per tael on Tuesday morning before plunging to VND90.5 million that afternoon.

Gold ring price dived to VND89.7 million per tael from Tuesday’s historic peak of VND91.7 million. A tael equals 37.5 grams or 1.2 ounces.

Globally, gold prices retreated on Wednesday from an all-time high hit in the previous session, as Federal Reserve Chair Jerome Powell’s hawkish comment cemented views of slower rate cuts this year, while investors awaited a key U.S. inflation report.

Spot gold fell 0.4% to $2,885.53 per ounce. Bullion climbed to a record high of $2,942.70 on Tuesday. U.S. gold futures eased 0.8% to $2,910.70.

Powell said on Tuesday the economy is in a good place and the Fed isn’t rushing to cut interest rates further, but is prepared to do it if inflation drops or the job market weakens.

Bullion is considered a hedge against inflation, but higher interest rates dampen the non-yielding asset’s appeal.

“The bullish trend (in gold) remains intact given the tariff picture uncertainty and the resulting safe-haven flows, which could keep underpinning the precious metal,” said Tim Waterer, chief market analyst at KCM Trade.

Questions & Answers

Q.

What caused the global gold prices to retreat from their all-time high on Wednesday?

A.

Global gold prices retreated after Federal Reserve Chair Jerome Powell's hawkish comments cemented views of slower rate cuts this year. Investors were also awaiting a key U.S. Inflation report at the time.

Q.

How much did the Vietnamese gold bar price fall from its record high on Wednesday morning?

A.

The Vietnamese gold bar price fell by 2.28% from its record high. It dropped to VND90.2 million per tael on Wednesday morning, down from the previous day's peak of VND92.3 million.

Q.

Why might higher interest rates negatively impact the appeal of gold as an investment?

A.

Higher interest rates typically dampen gold's appeal because bullion is a non-yielding asset. When interest rates are high, other investments can offer better returns, making gold less attractive.

Q.

Despite recent drops, what factor might continue to support a bullish trend for gold?

A.

According to Tim Waterer, chief market analyst at KCM Trade, the bullish trend for gold remains intact due to tariff picture uncertainty. This uncertainty can lead to safe-haven flows, underpinning the precious metal.

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