Gold prices slip
In this article (5)
SJC gold price dropped 0.15% to VND67 million ($2,815.72) per tael Thursday afternoon.
Gold ring price remained unchanged at VND54.35 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally gold prices rose on Thursday, helped by a slight pullback in the dollar, although prospects of U.S. interest rates staying higher for longer kept bullion on a tight leash, Reuters reported.
Spot gold was up 0.2% at $1,828.17 per ounce.
Elevated interest rates dampen gold’s appeal as an inflation hedge while raising the opportunity cost of holding the non-yielding asset.
Minutes from the Federal Reserve’s latest policy meeting showed on Wednesday policymakers agreed rates would need to move higher, but that the shift to smaller-sized hikes would let them calibrate more closely with incoming data.
“The Fed stated they’re still looking at combating inflation and raising interest rates, but not as aggressive as before… because of that, gold prices have retreated a little, and this morning they’re just consolidating,” said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.
Questions & Answers
Q.Did global gold prices also fall on Thursday?
Did global gold prices also fall on Thursday?
No, globally gold prices actually rose on Thursday. This was partly due to a slight pullback in the dollar, though elevated US interest rates limited further gains for bullion.
Q.What is the current value of an SJC gold tael?
What is the current value of an SJC gold tael?
An SJC gold tael is currently valued at VND67 million. This translates to $2,815.72, following a 0.15% drop on Thursday afternoon.
Q.What is the reason for the recent change in gold prices?
What is the reason for the recent change in gold prices?
The Federal Reserve's commitment to combating inflation and raising interest rates, albeit at a less aggressive pace, has led to gold prices retreating. Elevated interest rates reduce gold's appeal as an inflation hedge.
Q.How much does a tael weigh?
How much does a tael weigh?
A tael is a unit of weight mentioned in the article. It is equivalent to 37.5 grams. In imperial measurements, this is 1.2 ounces.
Reader pulse
How do gold price movements affect your retail strategy?
24,341 votes so far