Gold rings on display at a store in Hanoi. Photo by VnExpress/Giang Huy
Saigon Jewelry Company gold ring price surged by 0.65% to VND76.7 million (US$3,014.1) per tael Friday morning.
It is now 0.37% away from gold bar price, which has been stable at VND79.68 million per tael since June 6. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold and silver prices are solidly higher in midday U.S. trading Thursday, with gold hitting a six-week high and back above $2,400 in the wake of another tame U.S. inflation report that suggests the Federal Reserve will cut interest rates sooner rather than later, Kitco News reported.
June U.S. consumer price index saw a rise of 3.0%, year-on-year. June CPI was forecast coming in at up 3.1% and compares to the May report reading of up 3.3%.
A few analysts are even thinking the Fed could cut U.S. interest rates at its next FOMC meeting on July 30-31. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Insight:
Investors are closely monitoring movements in the gold market, with the price of gold rings nearing that of gold bars. The recent surge in gold and silver prices is attributed to the anticipation of the Federal Reserve cutting interest rates, making non-yielding bullion more attractive in comparison. This shift in the market dynamics showcases the impact of economic indicators on the precious metal sector, highlighting the interconnectedness of global financial markets.
