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Vietnam Gold Prices Surge Amidst Global Rate Hikes and Geopolitical Tensions

Gold Prices in Vietnam Hit Record High

The price of gold rings in Vietnam has surged by 1.18%, reaching VND85.8 million per tael. A tael, equivalent to 37.5 grams or 1.2 ounces, reflects the increasing demand and value of this precious metal in the local market.

Gold Prices in Vietnam

Globally, gold prices have scaled a two-week peak, driven by escalating geopolitical tensions and expectations of another rate cut by the U.S. Federal Reserve. This anticipation, coupled with the upcoming U.S. inflation report, has significantly influenced the market, according to Reuters.

Spot gold was up 0.2% at $2,698.47 per ounce, marking its highest level since November 25. Meanwhile, U.S. gold futures rose 0.6% to $2,734.70.

Investors are closely watching the U.S. Consumer Price Index (CPI), expected to rise by 0.3% in November. This data could shape expectations for the Fed's 2025 policy. The Fed is widely expected to cut rates by 25 basis points on December 18, with a potential pause in late January due to inflationary concerns.

Gold, often seen as a safe investment during economic and geopolitical uncertainties, tends to perform well in a low-interest-rate environment.