Gold prices experienced a slight drop on Saturday morning, with SJC gold falling by 0.2% to VND74.35 million per tael. Gold rings were also down by 0.24% to VND61.85 million per tael. This slight dip in gold prices came after global gold prices reached a 10-day high on Thursday due to the weakening of the U.S. dollar and Treasury yields following the Federal Reserve’s announcement of an end to its monetary policy tightening cycle, as reported by Reuters.
This led to spot gold rising by 0.4% to $2,034.31 per ounce with U.S. gold futures settling 2.4% higher at $2,044.90. Additionally, the dollar dropped to a four-month low, while the U.S. benchmark 10-year yield also reached its lowest level since late July.
Insight: The decrease in gold prices is likely attributed to the shifting currency and economic landscape in the United States. The Federal Reserve’s decision to end its monetary policy tightening cycle has impacted the strength of the U.S. dollar and Treasury yields, which in turn has influenced the global price of gold. While this decrease may be a short-term fluctuation, it is important to monitor how the market and global economic conditions continue to evolve to gauge the future movement of gold prices.
