Gold prices in Vietnam saw a slight dip on Monday, with gold bars falling by 0.24% to VND84.5 million (US$3,318.61) per tael. Similarly, the price of gold rings also decreased by the same margin to VND84.3 million per tael. The price fluctuations come as the global market experiences mixed trends, with investors keeping a close watch on economic indicators and geopolitical developments. One tael is equivalent to 37.5 grams, or 1.2 ounces.
Despite the slight downturn in Vietnam, global gold prices saw a modest increase on Monday. Investors were particularly focused on the potential impact of upcoming decisions from the U.S. Federal Reserve on interest rates, as well as President-elect Donald Trump’s trade and tariff policies, which could have significant implications for global markets in 2025. According to Reuters, these developments are expected to shape the trajectory of gold prices in the coming year, adding to the ongoing volatility in the precious metal’s value.
Spot gold prices increased by 0.2%, reaching $2,626.30 per ounce, while U.S. gold futures gained 0.3%, trading at $2,638.70 per ounce. The dollar index, which tracks the performance of the U.S. dollar against a basket of other major currencies, remained relatively stable, which helped to maintain gold’s current price level. Analysts believe that the flat dollar index is contributing to gold’s sideways movement, preventing significant swings in either direction.
Kelvin Wong, Senior Market Analyst at OANDA for the Asia-Pacific region, noted that geopolitical tensions continue to play a significant role in gold’s market behavior. “Geopolitical uncertainties have been one of the main drivers behind gold’s upward trend this year, and they are likely to remain an influential factor into 2025, especially with the possible impact of Trump’s policies,” Wong said in a statement. Gold is often seen as a safe-haven asset, with investors flocking to the metal in times of economic instability or political uncertainty.
Gold has had a remarkable performance in 2024, gaining more than 27% so far this year. The precious metal reached an all-time high of $2,790.15 per ounce on October 31, fueled by significant policy actions by the U.S. Federal Reserve, including a large interest rate cut in September, as well as heightened geopolitical tensions around the globe. These factors have contributed to the growing demand for gold as a store of value, pushing prices to new highs.
With the Federal Reserve’s interest rate decisions and Trump’s policies on trade and tariffs likely to influence market dynamics in the coming year, analysts predict that gold may continue to benefit from these uncertainties. As we approach 2025, the balance between global economic recovery, inflationary pressures, and political risks will remain critical factors in determining the direction of gold prices in the months ahead.
The outlook for gold remains uncertain, but the trend toward higher prices appears set to continue as long as geopolitical tensions and economic uncertainty persist. Investors will continue to monitor the Federal Reserve’s actions and Trump’s policies, which could provide further clues about the future direction of the gold market.
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