Gold Prices Take a Dive

Saigon Jewelry Company reported a significant drop in gold bar prices, falling to VND121 million (US$4,656.53) per tael, a decrease of 2.42% from Tuesday's peak of VND124 million. Similarly, gold ring prices saw a reduction, sliding by 2.1% to VND116.5 million per tael. It's important to note that a tael equals 37.5 grams or 1.2 ounces.

Global Market Reactions

The global gold market also felt the tremors as prices fell on Wednesday. This shift was influenced by U.S. President Donald Trump retracting his threats to dismiss Federal Reserve Chair Jerome Powell and expressing optimism for a trade deal with China, which reduced gold's appeal as a safe-haven asset. Reuters highlighted that spot gold fell 0.7% to $3,357.11 an ounce, while U.S. gold futures dropped 1.5% to $3,366.80.

Market Analysts Weigh In

Despite the downturn, analysts like Kelvin Wong, senior market analyst for Asia Pacific at OANDA, suggest that the bullish momentum for gold isn't exhausted yet. Wong points out the potential for upward movement, given the current global economic uncertainties and inflation concerns. Gold, revered as a hedge against such uncertainties, had previously surged to a record high of $3,500 this year, marking its 28th record high.

Looking Ahead

With predictions from JP Morgan anticipating gold prices could cross the $4,000-per-ounce milestone next year, investors and market watchers remain keenly observant of the fluctuating dynamics in the gold market.