Gold prices extend rally

By Ngan Anh October 9, 2023 | 08:34 pm PT

A shopkeeper shows gold bangles to a customer at a jewellery shop in Mumbai November 4, 2009. Photo by Reuters

SJC gold price rose 0.2% to VND69.8 million ($2,860.36) per tael on Tuesday morning.

Gold ring price increased 0.52% to VND57.35 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally, gold prices continued to rise on Tuesday, a day after posting sharp gains on increased market uncertainty due to conflict in the Middle East, as dovish remarks from top U.S. Federal Reserve officials weighed on the dollar and bond yields, according to Reuters.

Spot gold gained 0.1% to $1,862.80 per ounce by 0314 GMT, after earlier hitting its highest since Sept. 29.

U.S. gold futures climbed 0.7% to $1,876.90."The events in the Middle East have provided a catalyst for gold to rebound from oversold conditions," said Kyle Rodda, financial market analyst at Capital.com.

In the longer run, however, U.S. rates will be the bigger driver, he said, adding that yields are broadly very positive "and that’s kryptonite for gold."

Gold is seen as a safe-haven investment during times of economic uncertainty, but as it yields no interest, it tends to lose its attraction when interest rates rise.