The price of Vietnam's gold bars saw another increase on Thursday morning, climbing up by 0.90%, reaching VND100.4 million (approximately US$3,928.78) per tael—a fresh peak.
The cost of a gold ring increased by 0.80%, reaching VND100.7 million per tael. It's worth noting that one tael is equivalent to 37.5 grams or approximately 1.2 ounces.
The safe-haven metal has consistently reached record-breaking levels this week as worldwide rates surge to all-time peaks. In Vietnam, the cost of gold has increased by 19% since the start of the year.
Worldwide, gold reached record levels on Thursday after the Federal Reserve suggested the possibility of up to two interest rate reductions this year, enhancing gold’s attractiveness due to persistent global political and financial challenges. Reuters reported.
Spot gold increased by 0.1% to reach $3,049.89 per ounce. Earlier in the trading session, bullion had hit a peak of $3,055.96.
Gold is being propelled by "numerous uncertain market conditions, geopolitical strains, a declining U.S. dollar, and anticipation for potential rate cuts down the line," according to Dick Poon, who serves as the general manager at Heraeus Metals Hong Kong Ltd.
Tariff unpredictability, potential interest-rate reductions, and renewed conflicts in the Middle East have all played roles in driving gold’s unprecedented surge. This has led to bullion achieving 16 new peak prices this year alone, with as many as four of those peaks surpassing the $3,000 threshold.
Inflexible gold serves as a safeguard amidst worldwide uncertainties and flourishes when interest rates are low.
"In light of the strong performance in gold during Q1, I believe a pullback is quite possible," stated Nicholas Frappell, who serves as the global head of institutional markets at ABC Refinery.
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