Gold price rises as global rates edge lower

By Minh Hieu   January 15, 2025 | 02:10 am PT
Gold price rises as global rates edge lower
A person holds gold bars at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold bar price rose 0.23% to VND86.6 million (US$3,411.13) per tael Wednesday afternoon while global bullion inched down.

Gold ring price stood firm at VND86.1 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally, gold prices edged lower on Wednesday as caution prevailed ahead of the U.S. consumer price inflation report that could provide more clarity on the Federal Reserve's interest rate trajectory, Reuters reported.

Spot gold eased 0.1% to $2,675.72 per ounce. U.S. gold futures gained 0.3% to $2,690.60.

"If the CPI data comes higher, that might send gold lower because that kind of solidifies the view that the Fed more likely will be normalizing last year's dovish policy in 2025," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.

Non-yielding bullion is used as a hedge against inflation, although higher interest rates diminish its appeal.

"If gold prices were to dip further to break out of the November range down below $2,600, the next key level will be around $2,540 and I believe that could be an attractive level for long-term holders to consider," Wong said.

According to Reuters technical analyst Wang Tao, spot gold may fall towards $2,635.

 
 
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