Historic Highs to Sudden Plunge

Gold prices experienced a significant drop after reaching an all-time high of VND92.3 million per tael on Tuesday morning, only to plummet to VND90.5 million by the afternoon. Similarly, gold ring prices fell sharply from a peak of VND91.7 million to VND89.7 million per tael. A tael, for reference, is equivalent to 37.5 grams or 1.2 ounces.

Global Gold Market Reacts

On the global stage, gold prices also retreated from their historic highs. Spot gold fell by 0.4% to $2,885.53 per ounce, a notable decrease from Tuesday's record high of $2,942.70. U.S. gold futures saw a similar trend, easing by 0.8% to $2,910.70. This shift in the market comes amidst comments from Federal Reserve Chair Jerome Powell, who indicated a cautious approach to further rate cuts, contingent on inflation and job market conditions.

Economic Indicators and Market Sentiment

Powell's remarks highlighted the economy's current stability but also the Fed's readiness to adjust rates if necessary. Gold, traditionally seen as a hedge against inflation, faces reduced appeal with higher interest rates. However, market analysts like Tim Waterer of KCM Trade suggest that the bullish trend for gold remains, driven by ongoing uncertainties in trade tariffs and the resulting safe-haven investments.