Vietnam Gold Prices Recover Afternoon Drop

Vietnam's gold prices bounced back on Wednesday afternoon after a 0.7% drop earlier in the session. Saigon Jewelry Company (SJC) gold bar price rose to VND141.5 million (US$5,375.63) per tael, closing at the same level as Tuesday. A tael equals 37.5 grams or 1.2 ounces. Gold ring prices similarly rebounded to VND141 million per tael. Globally, gold prices edged up on Wednesday, supported by some technical buying, as investors hunkered down for the Federal Reserve's interest rate decision later today, Reuters reported. Spot gold gained 0.22% to $4,036.09 per ounce, while U.S gold futures for August delivery were steady at $4,037.3. "Gold is holding up today on dip-buying around the psychological $4,000 level, prospects of a US-Iran diplomatic off-ramp and market expectations for a Fed hold," said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com. Market participants widely expect the central bank to hold rates steady. Still, about 31% are pricing in a 25-basis-point hike. While gold is typically seen as an inflation hedge, bullion tends to suffer in a high interest rate environment due to its non-yielding characteristic.