Gold Prices Climb as Global Rates Show Uptick

Gold prices have experienced a notable increase, with the gold ring price rising to VND84.1 million per tael, equivalent to 37.5 grams or 1.2 ounces. This rise in gold prices can be attributed to the global trend of increasing interest rates, which has influenced the precious metal's market dynamics.

Globally, spot gold edged higher on Monday, supported by short covering after a weekly loss on Friday due to the Federal Reserve's cautious stance on rate cuts in the upcoming year, as reported by Reuters.

Spot gold was up 0.2% to $2,626.44 per ounce. U.S. gold futures eased 0.1% to $2,642.10. "We are entering the holiday mode and gold's mainly been helped by short covering which started on Friday itself and there is some technical support as well," said Ajay Kedia, director at Kedia Commodities, Mumbai.

On Friday, gold gained on a softer U.S. dollar and Treasury yields when U.S. economic data hinted at a slowdown in inflation. San Francisco Federal Reserve President Mary Daly and two other Fed policymakers on Friday said they felt the central bank would likely resume rate cuts next year but take their time given that the "recalibration phase" was over.

Higher rates dull non-yielding bullion's appeal. "I see good support for gold at $2,595 and resistance would be at $2,664," Kedia said.