World gold prices are anchored at record highs and all eyes are on the US Federal Reserve (Fed). A surprise decision - even a across-the-top as President Donald Trump suggested - could become a catalyst for a new wave of price increases.
According to the World Gold Council (WGC)'s weekly market report, although the Fed is expected to cut interest rates by another 0.25 percentage points after the meeting on September 17, Fed Chairman Jerome Powell's speech and tone are the key to the next step for gold prices.
Gold price movements last week reflected a mix of inflation data and political fluctuations. In the US, inconsistent inflation, a cooling labor market and weak consumer confidence have kept expectations of rate cuts high.
In Europe, political instability in France has increased economic pressure while the European Central Bank (ECB) has kept interest rates unchanged.
Thanks to that, the world gold price immediately after a strong increase last Monday (September 8) remained around the mark of 3,640 USD/ounce, closing the week with an increase of 1.6%.
However, by the morning trading session of September 15 US time, spot gold prices had bounced to $3,703.24/ounce before cooling down, fluctuating in the average of the day. The world gold price was listed at 9:00 p.m. on September 16 at 3,6961 USD/ounce.
In recent months, gold ETF investors have played a key role in supporting prices. The question is whether cash flow from COMEX futures contract investors will support this increase? If the Fed focuses on growth from inflation and cut interest rates aggressively, it could be a fuel for further gold price increases, the WGC said.
According to the WGC, all three of the most recent interest rate cuts (since 2000) have been associated with a spike in gold prices, as the Fed prioritizes stimulating growth rather than curbing inflation. If Mr. Powell insists the labor market is more important than inflation, this cycle could accelerate, leading to a wave of gold betting to increase, the report emphasized.
Technically, gold has just completed the extended triangle pattern, consolidating the uptrend. The WGC said the next resistance zone was between $3,664 and $3,676 an ounce. And if it breaks out, gold prices are forecast to reach important milestones: $3,700/ounce; $3,822/ounce (trend channel resistance); $3,840/ounce ( triangle model resistance). And further, the $3,915/ounce zone, a typict buy price according to historical statistics.
Meanwhile, support zones are identified at $3,580 - $3,560/ounce, with the key mark at $3,512/ounce.
Regarding domestic gold prices, as of 6:00 a.m. on September 17, the price of SJC gold bars was listed by DOJI Group at VND130.3-132.3 million/tael (buy - sell), an increase of VND1.7 million/tael for buying and VND1.2 million/tael for selling.
Bao Tin Minh Chau: 130.3-132.3 million VND/tael (buy - sell); Quy Phu Quy Gold and Stone Group: 129.8-132.3 million VND/tael (buy - sell).
The price of 9999 gold rings is listed by corporations around 126.8-130.6 million VND/tael (buy in - sell out).
