Gold prices reach new record

By Dat Nguyen   March 6, 2024 | 07:11 pm PT
Gold prices reach new record
A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Saigon Jewelry Company gold bar and ring prices all surged to new historic peaks Thursday morning after global rates hit all-time high.

Gold bar rose 0.37% to VND81.25 million ($3,290.14) per tael. A tael equals 37.5 grams or 1.2 ounces.

Gold ring price went up 0.29% to VND68 million.

Globally spot gold hit an all-time high of $2,152.09 per ounce early Thursday before declining to $2,150.00 at the time of publishing.

U.S. gold futures settled 0.8% higher at $2,158.2.

"Gold is likely to push higher as bullish sentiment remains dominant. However, bullion may take a little time to digest Powell's overall comments as well as see Friday's employment report," said Tai Wong, a New York-based independent metals trader, Reuters reported.

Gold suffers when high U.S. interest rates raise returns on competing assets such as bonds and boost the dollar, making the bullion costlier for overseas buyers.

"There's definitely been macro data that's pushed us in this direction and the follow on to policy expectations from the Fed... but the response in the gold market has been multiples of what long-term fair value models suggest," said Michael Hsueh, FX & Commodities Strategy analyst at Deutsche Bank.

Traders now see a 70% chance for a June Fed rate cut.

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