Gold Prices Remain Stable as Global Markets Watch Fed's Next Move

Gold bars have maintained their value at VND86.8 million per tael, with a tael equating to 37.5 grams or 1.2 ounces. This stability comes amidst a global economic landscape filled with uncertainties and the Federal Reserve's cautious approach towards rate cuts.

Spot Gold and U.S. Futures Show Minimal Movement

Spot gold prices remained unchanged at $2,689.09 per ounce, staying close to the one-month peak achieved last Friday. Meanwhile, U.S. gold futures saw a slight increase of 0.2%, reaching $2,719.50. This minimal movement reflects the market's anticipation of the Federal Reserve's upcoming decisions and the potential impact of the Trump administration's policies on inflation and trade.

Federal Reserve's Cautious Stance Influences Gold Market

The recent strong U.S. jobs report has reinforced the Federal Reserve's cautious stance on rate cuts, with traders fully expecting the Fed to maintain current rates at its next meeting. The market anticipates only one rate cut this year, likely in June. This cautious approach, coupled with the uncertainty surrounding the Trump administration's trade policies, continues to drive demand for gold as a safe-haven asset.

Gold is traditionally seen as a hedge against inflation, though higher interest rates can diminish its appeal as a non-yielding asset. The current economic climate, characterized by uncertainty and cautious monetary policy, underscores the importance of gold in investment portfolios.