Gold prices rise
In this article (5)
SJC gold price gained 0.15% to VND66.9 million ($2,818.62) per tael Wednesday.
Gold ring price went up 0.28% to VND54.1 million. A tael equals 37.5 grams or 1.2 ounces.
Reuters reported that gold prices edged lower on Wednesday while investors braced for more U.S. interest rate hikes amid stubbornly high inflation.
Spot gold was down 0.2% at $1,824.06 per ounce as the dollar index rose 0.1%, making bullion more expensive for buyers holding other currencies.
U.S. consumer confidence unexpectedly fell in February, with the decrease concentrated among lower-middle-income households, though Americans grew more upbeat about the labor market, a survey showed on Tuesday.
High-interest rates dampen gold’s appeal as an inflation hedge while raising the opportunity cost of holding the non-yielding asset.
Questions & Answers
Q.Did all gold prices increase on Wednesday?
Did all gold prices increase on Wednesday?
No, while SJC gold price and gold ring price increased in VND, Reuters reported that spot gold was down 0.2% at $1,824.06 per ounce on Wednesday.
Q.What effect do high interest rates typically have on gold's appeal?
What effect do high interest rates typically have on gold's appeal?
High interest rates generally reduce gold's attractiveness as an inflation hedge. They also increase the opportunity cost of holding the non-yielding asset, making it less appealing to investors.
Q.Why did the dollar index rising make bullion more expensive?
Why did the dollar index rising make bullion more expensive?
The dollar index rising makes bullion more expensive because it increases the cost for buyers who are holding other currencies. This is a common effect in global commodity markets.
Q.What was the latest news regarding U.S. Consumer confidence?
What was the latest news regarding U.S. Consumer confidence?
U.S. Consumer confidence unexpectedly fell in February, with the decline primarily affecting lower-middle-income households. This happened despite Americans feeling more positive about the labour market.