GOLD PRICES DROP AFTER GOD OF WEALTH DAY

Apr 25, 2024

 

Saigon Jewelry Company gold price fell 0.44% to VND67.3 million ($2,869.93) per tael Wednesday morning after rising on the God of Wealth Day.

 

PNJ of Phu Nhuan Jewelry sold its gold at VND54.5 million per tael, unchanged from Tuesday. A tael equals 37.5 grams or 1.2 ounces.

 

 

Demand for gold often rises on God of Wealth Day (the 10th day of the lunar year, or January 31 this year), as buying gold on the day is believed to bring good fortune to business and families throughout the year.

 

Globally gold traded in a narrow price range as investors refrained from taking big bets ahead of the U.S. Federal Reserve’s policy decision due later in the day, Reuters reported.

 

Gold should hold above $1,900 levels heading into the Fed meeting and the Fed message needs to be heard to grasp bullion’s next likely direction, said Matt Simpson, a senior market analyst at City Index.

 

Lower interest rates tend to be beneficial for bullion, decreasing the opportunity cost of holding the non-yielding asset.

 

Meanwhile, data released on Tuesday showed U.S. labour costs increased at their slowest pace in a year in the fourth quarter as wage growth slowed.

 

Source: VnExpress

 

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