Global Gold Prices Plummet as Domestic SJC Gold Rises Amid Fed Rate Hike Speculation

The gold market showed a stark contrast on August 29th, as global gold prices plummeted by over 3% following Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole. However, domestic SJC gold bars unexpectedly moved in the opposite direction, rising to 150 million VND/ounce.

The sharp sell-off in global gold was attributed to Warsh's statement that the Fed still has 'work to do' if it is not confident that core inflation is returning to its 2% target. This led to a surge in interest rates and a strengthening US dollar, putting pressure on precious metals.

The contrast between domestic and global gold prices could put pressure on domestic price lists in subsequent adjustments. DOJI's 9999 pure gold rings are currently selling for 151.7 million VND per tael, while PNJ adjusted the price of gold rings upwards, returning to the selling price of 150.2 million VND/ounce.