Gold price tiptoes down

By Minh Hieu   April 18, 2024 | 09:30 pm PT
Gold price tiptoes down
A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Saigon Jewelry Company gold bar price slid 0.36% to VND83.8 million ($3,292.41) per tael Friday morning.

Gold ring price rose 0.39% to VND76.9 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally, safe-haven gold gained on Thursday as persistent tensions in the Middle East added to the metal's appeal despite robust economic data from the U.S. that raised prospects of fewer interest rate cuts, Reuters reported.

Spot gold firmed 1% at $2,384.83 per ounce. Prices touched an all-time high of $2,431.29 last Friday.

U.S. gold futures settled 0.4% higher at $2,398.

"When there are geopolitical tensions, the natural response is for investors to flee to gold, which is happening now. If the conflict further escalates, prices could go north of $2,500-$2,600, and if there is a ceasefire, then they could fall to $2,200," said Everett Millman, chief market analyst with Gainesville Coins.

"Central bank purchases are also placing a floor beneath the prices," he added.

Bullion's upside came despite data showing U.S. weekly jobless claims were unchanged at low levels last week. Strong U.S. economic data and hawkish rhetoric from Fed officials have prompted investors to drastically rethink the chances of the Federal Reserve cutting rates any time soon.

Higher interest rates reduce the appeal of holding non-yielding gold.

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