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SJC gold prices gained 0.3% to VND67.2 million per tael Tuesday afternoon.
Gold ring prices shot up 0.8% to VND54.3 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Global spot gold was up 1.2% at $1,846.08 per ounce jumped more than 1% to a six-month high on Tuesday on technical trading, while investors looked forward to minutes from the U.S. Federal Reserve’s latest policy meeting for more cues on its rate-hike path, Reuters reported.
“We’re seeing a slight bid for gold. But, with liquidity very low this time of the year, it appears to be technical buying as opposed to fundamentally driven,” said Matt Simpson, a senior market analyst at City Index.
Minutes from the Fed’s December policy meeting are due on Wednesday. The Fed raised rates by 50 basis points in December after four consecutive increases of 75 basis points each.
“I doubt the minutes will pack as much of a punch as the Fed’s December meet had, but traders will look for confirmation of the lower terminal Fed rate expressed in the median dot plot and that could support gold,” Simpson added.
Gold is considered a hedge against inflation and economic uncertainties, but higher interest rates increase the opportunity cost of holding gold as it pays no interest.
