Gold prices inch up

By Minh Hieu   March 5, 2024 | 11:37 pm PT
Gold prices inch up
A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Saigon Jewelry Company gold bar price rose 0.19% to VND80.8 million ($3,269.9) per tael Wednesday morning as it inch closer to its previous peak.

Gold ring price went up 0.15% to VND67.8 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally, gold scaled a record high on Tuesday, moving further above $2,100 per ounce in a rally sparked by growing bets for a U.S. interest rate cut in June and on safe-haven demand due to the conflict in the Middle East, Reuters reported.

Spot gold gained 0.8% to $2,132 per ounce, having hit a record $2,141.59 earlier.

U.S. gold futures settled about 0.7% higher at $2,141.9.

Bullion last hit a record high in December at $2,135.40.

"The big reason here is that we're seeing the market increasingly believing that a Fed rate cut is nearer rather than further away," said Bart Melek, head of commodity strategies at TD Securities.

"Markets have to be a little bit more convinced for gold to move higher, but ultimately in the second quarter, we do think it can go to over $2,300 plus."

Traders currently see a 70% chance that the Fed will start cutting rates by June, according to the CME FedWatch tool.

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