Gold Prices Tumble Globally as Interest Rates and Oil Prices Bite
On September 25th, gold prices experienced another decline in both Vietnam and globally. In Vietnam, SJC gold bars dropped by 1.1 million VND/ounce to 144.4 million VND/ounce, while international gold prices fell to $4,271 per ounce, a decrease of approximately 0.42% from the previous day.
The decline in global gold prices is attributed to high interest rates and oil prices. The US bond market continues to pressure gold, with yields on 10-year US Treasury bonds reaching 5.1497%, their highest level since 2007. This makes holding non-interest-bearing assets like gold less appealing.
As a result, the safe-haven demand for precious metals is being outweighed by these external factors. The market is also betting on further interest rate hikes from the Federal Reserve, with Fed Funds contracts indicating a probability of around 66% for an increase at the next meeting.