Gold jewelry on display at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Saigon Jewelry Company gold ring price slid 0.49% to VND71.75 million ($2,874.66) per tael Friday morning after establishing a new record price on Thursday.
Gold bar price also decreased by 0.12% to VND81.2 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices took a breather on Thursday after hitting an all-time high earlier in the session on expectations for lower U.S. interest rates this year, as investors await more clarity on the timing of the cuts, Reuters reported.
Spot gold was steady at $2,300.49 per ounce after hitting a record high of $2,304.09 earlier in the day.
U.S. gold futures settled 0.2% lower at $2,308.5.
Strong central bank buying and safe-haven inflows amid growing geopolitical tensions have boosted demand for gold, helping to drive the price up more than 25% since October.
“It’s heavily overbought and needs to correct to blow some of the froth. Fed cuts are priced in, in my view,” said StoneX analyst Rhona O’Connell.
Insight: Impact of Economic Factors on Gold Prices
Gold prices are influenced by various economic factors, such as interest rates, geopolitical tensions, and central bank actions. The recent decrease in gold prices can be attributed to expectations of lower U.S. interest rates, leading to a temporary cooldown in the market. Despite this slight dip, the overall trend has been an upward trajectory, with gold prices climbing over 25% since October due to increased demand driven by safe-haven inflows.
