Retail News CRM

Tag: federal

  • Gold Prices Plunge to 6-Week Low Amid Rising Oil Prices and Anticipated Federal Rate Hikes

    Gold Prices Plunge to 6-Week Low Amid Rising Oil Prices and Anticipated Federal Rate Hikes

    Gold prices in Vietnam experienced a notable decline on Thursday, marking their lowest level since the 11th of June. The downturn continued from the morning into the afternoon session, reflecting a trending decrease in gold prices throughout the year.

    Trends in Gold Prices

    The Saigon Jewelry Company reported a drop of 1.41% in the price of their gold bars, bringing the price to VND140 million, or US$5,321.37, per tael. This decrease marks a total decline of 4.11% since Wednesday’s close. Additionally, the cost of a gold ring plummeted by 1.85%, settling at VND143.3 million per tael. Overall, gold prices in Vietnam have fallen by 8.4% this year.

    Internationally, the value of gold also fell on Thursday, drifting down from a two-week peak reached earlier. This worldwide decrease was caused by various factors, including a growing conflict in the Middle East, which has led to a surge in oil prices. Traders are also awaiting the outcomes of the Federal Reserve policy meeting next week for indications regarding the possible timing of interest rate hikes.

    Spot gold fell by 0.6%, bringing the price to $4,103.39 per ounce. This shift comes after spot gold reached its highest value since July 7th at $4,165.87 on Wednesday. Concurrently, August delivery for U.S. gold futures dropped by 1.1% to $4,106.40.

    Market Influences and Future Predictions

    These changes in the gold market can be attributed to various causes, as explained by Jigar Trivedi, a senior research analyst at IndusInd Securities. According to him, “Rising oil prices have contributed to escalating inflation and the anticipation of Fed rate hikes. Consequently, these factors have limited the positive momentum in the gold market as the dollar weakens.”

    Questions & Answers

    What factors are causing the drop in gold prices?
    A combination of escalating inflation, expected Fed rate hikes, and a weakening dollar have influenced the gold market negatively, resulting in a price drop.

    What is the current trend in Vietnam’s gold market?
    The gold market in Vietnam has been experiencing a downward trend, with an 8.4% decrease in prices so far this year.

    How has the conflict in the Middle East affected global gold prices?
    The escalating conflict in the Middle East has driven up oil prices. As a result, inflation has increased and gold prices have fallen globally.

  • Dollar Scales Two-Month High Against Dong amid Federal Reserve Rate Hike Speculations

    Dollar Scales Two-Month High Against Dong amid Federal Reserve Rate Hike Speculations

    On Tuesday morning, the U.S. dollar witnessed a slight increase in value against the Vietnamese dong, maintaining a position close to its two-month peak in comparison to other major currencies. The commercial bank Vietcombank recorded a 0.004% rise in the U.S. currency, selling it at VND26,408. Conversely, the black market saw a 0.04% decrease, with the dollar going for VND26,360.

    Global Performance of the U.S. Dollar

    In the international currency market, the U.S. dollar remained strong and close to a two-month high on Tuesday. The stability of the dollar can be attributed to the uncertainty in the Middle East which has led to a reduced risk appetite among traders. Furthermore, speculations about a potential rate hike by the Federal Reserve later in the year have also played a role.

    Among other major currencies, the euro was valued at $1.1528 while the sterling was valued at $1.3335. Both currencies had experienced a decline of approximately 0.05% in the Asian market after reaching their lowest value in two months during the previous trading session.

    The risk-sensitive currencies such as the Australian dollar and the New Zealand dollar were not spared. The Australian dollar depreciated by 0.1% to $0.7039, while the New Zealand dollar was traded at $0.5804.

    The Japanese yen was also affected, weakening to as much as 160.295. It continued to hover around the 160 level, a mark recognized as the threshold for possible official intervention.

    Performance of the Dollar Index

    The dollar index, reflecting the performance of the U.S. dollar against a basket of currencies such as the yen and the euro, remained nearly unchanged. The index was recorded at 100.03, extremely close to its two-month high of 100.21 from the previous day.

    Questions & Answers

    What was the value of the U.S. dollar against the Vietnamese dong on Tuesday morning?
    The U.S. dollar was valued slightly higher against the Vietnamese dong, selling at VND26,408 in Vietcombank.

    Why has the U.S. dollar held near a two-month high globally?
    The strength of the U.S. dollar can be attributed to the prevailing uncertainty in the Middle East, reducing risk appetite among traders. Additionally, speculations of a Federal Reserve rate hike later in the year have contributed to the dollar’s high standing.

    How did other major currencies perform against the U.S. dollar?
    The euro and sterling both experienced a decline of around 0.05%. The Australian dollar depreciated by 0.1% while the New Zealand dollar traded at $0.5804. The Japanese yen also weakened, hovering around the 160 level.

  • Will Australia Clamp Down on Infant Formula Ads? Exploring New Federal Consultation on Marketing Restrictions

    Will Australia Clamp Down on Infant Formula Ads? Exploring New Federal Consultation on Marketing Restrictions

    Australian Government Considers Infant Formula Marketing Regulations

    The Australian federal government recently invited public responses to a consultation paper, exploring the potential introduction of laws to limit or completely halt the marketing of infant formula across the country. This open consultation has been set to terminate by April 10.

    Since February 2025, manufacturers of Australian infant formula have been adhering to an agreement, albeit voluntary, to avoid advertising formula milk products for babies who have not yet reached their first birthdays. The unstated goal of this agreement was to encourage and safeguard the practice of breastfeeding.

    However, with recent statistics indicating a lower-than-expected rate of breastfeeding in the country, the government has decided against renewing the voluntary arrangement. Instead, it is now considering implementing stricter measures.

    While these new measures do not directly advocate breastfeeding, they are designed to curb marketing strategies that present formula milk as a similar or better alternative.

    Our evaluation of online ads for infant formula aimed at Australian parents shows that companies exploit parental fears. This also illustrates the issues arising from a voluntary arrangement.

    The Problem with Formula Advertising

    Breastfeeding offers substantial health benefits to both the mother and baby. These include safeguarding newborns from gastrointestinal and respiratory infections, lowering the risk of obesity and type 2 diabetes in later life, and reducing the likelihood that mothers will develop ovarian and breast cancer.

    For these reasons, Australian guidelines advise exclusive breastfeeding for the first six months after birth. The World Health Organization recommends continued breastfeeding for the first two years.

    In Australia, while breastfeeding rates are high at birth, they swiftly decline. Only 37% of babies were reported to be exclusively breastfed by six months in 2022.

    There are various factors contributing to a mother’s decision not to breastfeed, but advertising of formula products is a key concern. Such advertising has been shown to create confusion among parents about the nutritional benefits of formula versus breast milk, decrease breastfeeding initiation and duration, and present formula as a superior choice in the face of breastfeeding difficulties.

    Formula milk is crucial and often the only option for those who cannot breastfeed. However, it is also costly and can place financial stress on families, especially during the first year of a child’s life.

    Online advertising differs significantly from traditional ads. Online, ads are targeted based on people’s search and browsing histories or life events, reaching new or expecting parents at times when they may be most uncertain or susceptible to suggestion.

    Infant Formula Advertisements: What Are They Promising?

    The ADM+S Australian Ad Observatory, which we and our colleagues manage, collects data on ads encountered by Australians online in order to understand how digital advertising systems work.

    In 2022, we collected ads from 1200 Australian adults who voluntarily installed a plug-in on their browsers to capture ads while they browsed Facebook. Since 2025, we have been collecting ads from about 300 Australians who use an app to share ads that appear while they scroll through Facebook, Instagram, TikTok and YouTube on their phones.

    In this analysis, we studied ads collected in both years and identified 158 ads promoting formula products from local and international brands.

    We found brands used various tactics to attract parents. Some highlighted positive customer reviews or offered complimentary downloadable cookbooks and baby-proofing guides for homes.

    Other ads were in collaboration with prominent retailers, directing people to online shopping interfaces with “buy now” buttons.

    Most formula brands made some claims about the nutritional or behavioural benefits of their products. These claims exploit the anxiety parents often feel about their children meeting nutritional, sleep and developmental milestones.

    Some manufacturers claimed their product was fortified with vitamins and prebiotics that would “improve gut health” or help a toddler sleep longer at night.

    Others claimed their formula would give mothers “a moment of calm” or strengthen their toddler’s immune system. This is despite scientific evidence showing that breast milk can provide necessary antibodies to a sick child in real time.

    Starting early: The Problem with the Voluntary Advertising Agreement

    Many ads used images of very young toddlers who could easily be mistaken for infants aged 12 months or under. In one case, we found an ad explicitly promoting formula designed for babies under 12 months.

    This, along with the use of images of very young children to market ‘toddler milk’ (formula marketed for children aged one to three years), underscores some of the problems with a voluntary advertising agreement.

    Since toddler milk marketing was exempt, brands could target parents of newborns. This would generate brand awareness and consumer trust, potentially leading a parent to choose to start their child on formula instead – or earlier than they otherwise would.

    Enforcement has also been a challenge. The penalties for violating the agreement – listing the breach on the Department of Health website – have not been viewed as severe enough by the Australian Competition and Consumer Commission.

    Moreover, the digital advertising environment offers little visibility into what marketing is actually in circulation or who is being exposed to it.

    Outside of specialised research tools like our Ad Observatory and the Australian Internet Observatory, there is no systematic method for observing infant formula ads appearing on personalised social media feeds.

    Potential Government Actions

    The government is mulling over several options:

    Maintaining the status quo – no regulation.
    Introducing legislation mirroring the former voluntary agreement, preventing promotion of infant formula (for babies aged 12 months or under).
    Introducing legislation that also restricts toddler milk marketing (for children aged one to three years).
    We have provided all our data to the government to assist in the decision-making process. However, while the ads we discovered provide a glimpse behind the scenes, they likely underestimate the extent of formula marketing happening online.

    Infant formula can be a critical, sometimes life-saving, intervention for families in need. However, health interventions do not require persuasive advertising to fulfil their purpose.

    The essential policy question is whether a product designed to support infants should be promoted through the same marketing systems selling snack foods, cosmetics and financial products.

    Questions & Answers

    Why is the Australian government considering legislation to restrict infant formula marketing?
    The Australian government is considering this move due to concerns over lower-than-expected rates of breastfeeding in the country. There is a belief that marketing strategies by formula manufacturers might be presenting formula as a preferable choice to breastfeeding, potentially influencing parents’ decisions.

    What are the key issues with formula advertising?
    Formula advertising may cause confusion among parents about the nutritional benefits of formula versus breast milk. Ads may also suggest that formula is a superior alternative when facing breastfeeding challenges. Furthermore, these ads may exploit parents’ anxieties about their children’s nutritional and developmental needs.

    What are the potential options the government is considering regarding the regulation of infant formula marketing?
    The government is considering several options: maintaining the current situation with no regulation; introducing legislation similar to the former voluntary agreement that prevents the promotion of infant formula for babies aged 12 months or under; or introducing legislation that also restricts the marketing of toddler milk for children aged one to three years.

  • US Dollar Dips to Five-Week Low: Anticipations Rise for Potential Federal Reserve Rate Cut

    US Dollar Dips to Five-Week Low: Anticipations Rise for Potential Federal Reserve Rate Cut

    On Friday morning, the strength of the U.S. dollar saw a slight decrease against the Vietnamese dong, trading near a five-week low against major currencies. The Vietnamese-based commercial bank, Vietcombank, traded the U.S. dollar at a rate of VND26,408, a marginal decrease of 0.004% from the previous day’s rate. Additionally, on the unofficial black market, the currency showed a 0.05% slip, trading at around VND27,402.

    Vietnam’s Central Bank Update

    The State Bank of Vietnam adjusted their reference rate down by 0.004% to VND25,151. This rate is the benchmark against which banks in the country can negotiate their exchange rates for the day’s transactions.

    Global Performance of U.S. Dollar

    Internationally, the U.S. dollar was hovering near a five-week low against its major competitors on Friday. This global performance has been primarily driven by the anticipation of a rate cut by the U.S. Federal Reserve in the following week.

    The dollar index, a measure of the U.S. currency against six key global currencies, was static at 99.065 early in Asia. This followed a previous downward shift that saw the index touch a five-week low of 98.765. The overall trend for the week indicates a likely 0.4% decrease in the index.

    Cross currency rates remained relatively stable. The U.S. dollar traded at 155.18 yen, while the euro stood steady at $1.1647. The British pound remained firm at $1.3326, after pulling back from a six-week high the previous day.

    The Australian dollar held steady at $0.6609, after reaching a two-month high of $0.6624 on Thursday. Meanwhile, the Canadian dollar was trading at C$1.3961 against the U.S. dollar, with the Swiss franc at 0.8035, following a significant pullback from Wednesday’s two-week high of 0.7992.

    Future Projections

    The U.S. dollar faced further pressure due to speculations surrounding potential changes in the Federal Reserve leadership. The current term of Jerome Powell, the Fed Chair, is set to end in May. Anticipations of White House economic advisor, Kevin Hassett, taking over the role are high, and he is expected to advocate for additional rate cuts.

    Questions & Answers

    What was the trading rate of the U.S. dollar at Vietcombank on Friday?
    The U.S. dollar was traded at VND26,408 at Vietcombank on Friday.

    What changes were observed in the U.S. dollar’s performance against major currencies?
    On Friday, the U.S. dollar was trading near a five-week low against major currencies.

    Who is expected to succeed Jerome Powell as the Fed Chair, and what is anticipated from his tenure?
    White House economic advisor, Kevin Hassett, is expected to succeed Jerome Powell. Hassett is likely to advocate for more rate cuts.

  • Vietnam Gold Price Soars Amid Anticipated Federal Reserve Interest Rate Cut: An 89.9% Increase Since Start of Year

    Vietnam Gold Price Soars Amid Anticipated Federal Reserve Interest Rate Cut: An 89.9% Increase Since Start of Year

    On Tuesday morning, Vietnam saw a rise in the price of gold, in line with global rates which experienced an upward trend. This increase is attributed to market anticipation of a Federal Reserve interest rate cut.

    The Saigon Jewelry Company reported a 1.66% increase in the price of their gold bars, with the cost reaching VND152.9 million, equivalent to US$5,777.32 per tael. In addition, the price of their gold rings also experienced a rise of 1.68%, costing VND151 million per tael. To clarify, one tael is approximately 37.5 grams, or 1.2 ounces.

    Gold Price Surge

    There has been a marked increase in Vietnam’s gold price since the start of the year, with an overall surge of 89.9%.

    International spot gold also saw an increase, adding 0.27% to its value and reaching $4,144 per ounce. This rise is supported by growing hopes for a Federal Reserve interest rate cut in the coming month and the anticipation of fresh U.S. economic data offering further insights into monetary policy.

    Anticipation for Interest Rate Cut

    The head of commodity strategies at TD Securities, Bart Melek, stated, “The market is increasingly convinced that the U.S. Federal Reserve is set to cut interest rates in December.”

    Gold, a non-yielding asset, typically performs positively in situations where interest rates are low. This is particularly true during times of geopolitical and economic instability.

    Melek added, “We’re awaiting data, and the expectation is that it may display weakness. Inflation is likely not very high, and this all suggests that gold will perform well.”

    Questions & Answers

    Why has there been a surge in gold prices in Vietnam?
    The uptick in gold prices in Vietnam can be attributed to the anticipation of a Federal Reserve interest rate cut, along with global gold prices demonstrating a similar upward trend.

    How does the potential cut in interest rates affect gold prices?
    Gold, being a non-yielding asset, tends to perform well in low-interest-rate environments. The anticipation of a cut in interest rates therefore often leads to an increase in gold prices as investors seek stable investments.

    What does the future hold for gold prices?
    While it’s challenging to predict with certainty, current market expectations are that gold will continue to perform well, particularly if inflation remains low and economic data indicates weakness.