Gold prices gain 8.7% in 2022

Gold ring prices gained 0.28% from Friday to VND53.85 million. A tael equals 37.5 grams or 1.2 ounces.

Global spot gold at $1,821.50 an ounce is on course to wrap up 2022 about 0.4% lower, Reuters reported.

This year bullion came very close during the early days of the Ukraine crisis to touching the all-time highs above $2,000 hit in 2020 as countries around the world locked down.

The U.S. currency’s climb to 20-year peaks this year eroded demand for dollar-priced bullion, which is down $250 since the March peak.

“In light of the fact that gold is a zero-yielding asset, the precious metal’s traditional roles as a safe haven and as a hedge against inflation were greatly undermined by the Fed’s supersized rate hikes in 2022,” said Han Tan, chief market analyst at Exinity.

Top policymakers at the U.S. central bank have made clear their intentions on inflation, surprising investors who recently bet on a slower rate-hike trajectory.

“We are convinced that the outlook for U.S. monetary policy should remain in the driving seat (for gold),” Julius Baer said in its 2023 commodity outlook.