Gold and jewelry companies in Vietnam, such as Phu Nhuan Jewelry (PNJ), have increased their gold ring prices to 76.3-77.8 million VND per tael, a rise of 1 million VND from the previous day. DOJI also followed suit with an increase of 600 thousand VND, now trading at 76.7-77.9 million VND per tael.
In the international market, gold prices are surging and have reached an all-time high of 2,477 USD per ounce. The precious metal started its steep climb on the evening of July 16th (Vietnam time) when officials from the Federal Reserve (Fed) made comments that bolstered expectations for an interest rate cut in September. This has prompted investors to flock to the safe-haven asset of gold, anticipating a potential decline in the value of the US dollar following the rate cut.
Moreover, according to Goldman Sachs, the Fed may cut interest rates at the upcoming policy meeting on July 31st, rather than waiting until September. Goldman’s top expert, Jan Hatzius, stated in a report on Monday that inflation has made sufficient progress towards the Fed’s long-term target of below 2%, warranting a rate cut in July.
Gold prices surge to record highs
FedWatch CME predicts a 92% likelihood that the Fed will cut interest rates by 25 basis points at the FOMC meeting on September 18, and an 8% chance of a 50 basis point cut.
Experts note that low-interest rates will put pressure on the US dollar and US Treasury bond yields, further enhancing the appeal of gold.
