Gold prices bounce back midday after sharp morning drop

By Minh Hieu May 12, 2024 | 09:08 pm PT

A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

After suddenly dropping more than 3% from last weekend at the opening of Monday morning session, Saigon Jewelry Company gold bar price rebounded by 1% by noon.

SJC bullion started the day at VND88.5 million per tael before reaching VND90.4 million ($3,551.64) per tael. A tael equals 37.5 grams or 1.2 ounces.

Last Saturday, the price stood at VND91.3 million per tael.

Gold ring tiptoed up 0.07% to VND76.6 million per tael on Monday.

Globally, gold prices held steady on Monday as investors awaited key U.S. inflation reports, which could shed more light on the timing of the Federal Reserve's first rate cut, Reuters reported.

Spot gold held its ground at $2,358.42 per ounce. Prices hit a two-week high in the previous session.

U.S. gold futures fell 0.4% to $2,364.60.

The U.S. producer price index (PPI) data is scheduled for release on Tuesday, followed by the consumer price index (CPI) on Wednesday.

"I suspect inflation will be stickier than people want to see, so we need to allow for a few bumps in the road - but that doesn't necessarily mean inflation will rip higher," said City Index senior analyst Matt Simpson.

"It just won't disinflate as quickly as doves hope. And that could result in some choppy trade for gold prices around these highs, at a time of year usually associated with negative returns for gold prices."