Gold prices inch down 0.11%

By Minh Hieu   May 16, 2024 | 08:40 pm PT
Gold prices inch down 0.11%
A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Saigon Jewelry Company gold bar price fell 0.11% to VND89.9 million ($3,533.11) per tael Friday morning.

Gold ring price slid 0.32% to VND76.8 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally, gold prices appeared set for a second consecutive weekly gain on Friday, after recent U.S. inflation data fuelled expectations that the Federal Reserve could cut interest rates this year, Reuters reported.

Spot gold was up 0.1% at $2,379.14 per ounce, as of 0236 GMT. Bullion prices have gained 0.7% so far this week.

U.S. gold futures were flat at $2,383.20.

Data this week showing signs of cooling inflation offered the U.S. Federal Reserve good news, but policymakers have not openly shifted views yet about the timing of rate cuts investors are convinced will start this year.

Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.

"Gold prices may correct lower as markets look to re‑establish the historical relationship between gold and the U.S. dollar. It goes without saying that uncertainty will likely persist in gold markets in coming months," Commonwealth Bank of Australia said in a note.

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