Vietnam gold prices jump as US readies for interest rate cuts

A tael (1.2 ounce) of gold in Vietnam was traded for between VND38-38.35 million ($1,642-1,657). Photo by Shutterstock/Ktsdesign.

Gold prices rose in Vietnam Thursday morning as the U.S. Federal Reserve kept interest rate unchanged with possible cuts in the offing.

Gold buying prices at Vietnam’s largest jewelry company DOJI, SJC, was VND620,000 ($26.78) per tael, or 1.66 percent higher than yesterday, while its selling price rose by VND750,000 ($32.4), or 1.97 percent.

A tael (1.2 ounce) of gold was traded for between VND38-38.35 million ($1,642-1,657).

Phu Nhuan Jewelry also raised its buying price by VND440,000 ($19.01) per tael, or 1.17 percent, and selling price by VND820,000 ($35.42) per tael, or 2.18 percent. Its PNJ gold was traded for VND37.9-38.45 million ($1,637-1,661) per tael.

The higher gold prices in Vietnam followed a hike in U.S. gold prices as the U.S. Federal Reserve announced Wednesday that it would keep the interest rate unchanged, with possible cuts.

U.S. gold Thursday morning was traded 1.33 percent higher than Wednesday at $1,378 per ounce, according to Reuters. It was the highest level since March 2014.

Analysts anticipate that the Fed will lower the interest rate soon. Goldman Sachs said in a note that two cuts could happen next month and in September.