Gold ring price edges higher

Gold bar price remained steady at VND79.68 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally, gold prices jumped to an all-time peak on Wednesday, driven by mounting hopes of a U.S. interest rate cut in September after recent comments from Federal Reserve officials, Reuters reported.

Spot gold was up 0.2% at $2,473.87 per ounce, after hitting a record peak of $2,482.29. U.S. gold futures gained 0.3% to $2,475.80.

“Gold reached a new high watermark as investors position for the arrival of a lower interest rate environment. The $2,500 (range) is the next immediate target, though if the current momentum can be sustained we could be looking at prices further north from here before year-end,” said Tim Waterer, KCM Trade’s chief market analyst.

“Particularly, if we start seeing some more favorable U.S. CPI prints, which could make the Fed more dovish on rates than is already priced in.”

The allure of non-yielding bullion tends to be higher when interest rates are reduced.