Gold Prices in Vietnam Take a Hit

In a surprising turn of events, gold ring prices in Vietnam have slid by 0.81%, settling at VND85.2 million per tael. For those unfamiliar, a tael is equivalent to 37.5 grams or 1.2 ounces.

Globally, gold prices have shown a slight increase, positioning themselves for a weekly gain. This rise is attributed to two major factors: reports of China, the top consumer, resuming gold purchases and heightened expectations of an interest rate reduction by the Federal Reserve during its upcoming Dec. 17-18 meeting, as reported by Reuters.

Spot gold has seen a 0.3% increase, now priced at $2,688.29 per ounce. This marks a weekly gain with an overall increase of more than 2% this week. Meanwhile, U.S. gold futures remain steady at $2,711.30.

Matt Simpson, a senior analyst at City Index, cautions, "Gold enjoyed a bullish run heading into this week's U.S. inflation report, but another sharp bearish reversal on Thursday should remind gold traders that complacency is the devil."

Despite these global trends, gold prices fell more than 1% on Thursday due to profit-taking after briefly hitting a five-week high earlier in the session. This fluctuation was further influenced by U.S. producer prices rising more than expected in November, driven by a surge in food costs. Additionally, consumer prices in November increased by the most in seven months, solidifying bets on an interest rate cut. Gold typically thrives in a low-interest-rate environment.