Gold prices drop

By Dat Nguyen   February 14, 2023 | 08:34 pm PT
Gold prices drop
A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
SJC gold price fell 0.15% to VND67.3 million ($2,848.98) per tael Wednesday morning.

Gold ring price went down 0.09% to VND54.65 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Gold prices were lower on Wednesday, as the dollar firmed after data showing sticky U.S. inflation added to concerns that the Federal Reserve would persist with monetary policy tightening, Reuters reported.

Spot gold was down 0.3% at $1,849.60 per ounce, as of 0340 GMT, after falling to its lowest since early January on Tuesday.

Rising interest rates discourage investors from placing money in non-yielding assets like gold.

"A more aggressive tightening path is more likely to weigh on gold over the foreseeable future," said Matt Simpson, a senior market analyst at City Index.

"But with bearish momentum slowing and gold’s flat close (on Tuesday) despite stronger inflation, perhaps the path of least resistance points (to) slightly higher from current levels."

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