Gold Prices Hit New Highs

In a remarkable surge, gold prices have climbed to a 2.5-month high, with Saigon Jewelry Company gold bar price increasing by 0.57% to VND88 million (US$3,492.06) per tael, marking its highest since early last November. Similarly, gold ring prices have seen a 0.69% rise to VND87.5 million per tael.

Global Market Reactions

On the global stage, gold prices reached an 11-week peak, driven by safe-haven demand amidst uncertainties surrounding U.S. President Donald Trump's trade policies and a softer dollar. Spot gold prices rose by 0.1% to $2,748.18 per ounce, while U.S. gold futures saw a 0.1% increase to $2,762.90.

Expert Insights

Kelvin Wong, OANDA's senior market analyst for Asia Pacific, noted the uncertainty regarding the implementation of Trump's policies on major U.S. trading partners as a key factor driving the bullish tone in gold prices. The delay in imposing trade barriers by Trump on his first day in office further pushed the dollar lower, enhancing gold's attractiveness to foreign buyers.

Gold's Role as a Safe Investment

Gold continues to be viewed as a safe investment during periods of economic and geopolitical uncertainty. However, its appeal as an inflation hedge may be impacted if Trump's policies, perceived as inflationary, lead to prolonged higher interest rates by the Federal Reserve.