Gold prices rebound after morning drop
Vietnam gold prices rose on Wednesday afternoon, recovering from a 0.36% decline earlier in the session.
Saigon Jewelry Company gold bar price jumped 0.72% from the morning to VND140.5 million (US$5,337.74) per tael. The metal is up 0.36% for the day, but still down 5.08% so far this week.
Gold ring price jumped 1.08% to VND140 million per tael on Friday afternoon. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices continued to decline on Friday as escalating tensions in the Middle East pushed up energy prices and reinforced expectations that the U.S. Federal Reserve will tighten monetary policy to curb inflation.
Spot gold eased 0.2% to $4,037.29 per ounce after falling more than $130 from a two-week high hit on Wednesday. Bullion was still on track for a small weekly gain of 0.5%.
U.S. gold futures for August delivery were 0.3% lower at $4,039.80, according to Reuters.
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A person holds gold bars at a store in Ho Chi Minh City, Vietnam. Photo by VnExpress/Quynh Tran |
“The recent rally lacks fundamental support. If the bullish money runs dry, the rally will be like a castle in the air,” analysts at China Zheshang Bank said in a note cited by Bloomberg. “Should the Strait of Hormuz remain closed, oil prices stay high while the Fed maintains a hawkish stance, the gold price rebound will be unsustainable.”
Investors are awaiting next week’s Fed meeting, where policymakers are widely expected to leave interest rates unchanged. Traders are pricing in about an 81% chance of a hike in September, according to the CME FedWatch Tool. Higher-for-longer interest rates increase the opportunity cost of holding non-yielding bullion.
