Gold prices surge as global rates inch higher

Gold ring price also increased by 0.95% to VND84.8 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally, gold prices inched higher on Thursday, continuing its momentum from 2024, while traders sought more clarity on the U.S. Federal Reserve's interest rate trajectory and President-elect Donald Trump's policies, Reuters reported.

Spot gold rose 0.39% to $2,634.15 per ounce. U.S. gold futures edged up 0.2% to $2,646.30.

Bullion surged over 27% in 2024, its largest annual gain since 2010, driven by Fed's substantial rate cuts and escalating geopolitical tensions.

"Gold seems to be consolidating in a tight range, which often signals a market that's poised for a breakout. I suspect that breakout will be to the upside," said Kyle Rodda, financial market analyst at Capital.com.

Gold is likely to remain bullish (in 2025), driven by geopolitical risks and expectations of rising government debt due to a deep fiscal deficit under Trump’s administration, despite potential challenges from slower Fed rate cuts and U.S. dollar strength, Rodda said.

Gold is viewed as a hedge against inflation, particularly in times of geopolitical and economic uncertainty.