Gold prices move up

By Dat Nguyen   February 27, 2023 | 08:39 pm PT
Gold prices move up
A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
SJC gold price gained 0.15% to VND66.85 million ($2,811.19) per tael Tuesday morning.

Gold ring price inched up 0.09% to VND54.05 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally gold prices eased on Tuesday and were headed for their biggest monthly loss since June 2021 as impending interest rate hikes by the U.S. Federal Reserve sapped the non-yielding asset’s appeal, Reuters reported.

Spot gold was down 0.1% at $1,816.19 per ounce after hitting a two-month low on Monday.

Bullion is often seen as a hedge against inflation, but the opportunity cost of holding it rises when interest rates are increased to bring down inflation.

"The question is still, ‘How much more to hawkish Fed repricing?’ ... and this is highly dependent on how U.S. data turns out and, in particular, if the disinflation trend can be a bit more entrenched than bumpy," said OCBC FX strategist Christopher Wong.

"A pause in hawkish Fed repricing could see dollar momentum ease and that can provide support to gold."

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