The world gold price for delivery at 2:11 a.m. on September 18 (15:10 a.m. in the Eastern US on September 17) decreased by 0.9% to 3,658.25 USD/ounce, after climbing to a record of 3,707.40 USD/ounce just a few hours before. Gold has also gained nearly 6% this month alone and has seen a 39% increase since the start of the year.
The move comes right after the Fed cut interest rates by 0.25 percentage points, and signals that it will continue to loosen monetary policy for the rest of 2025. Fed Chairman Jerome Powell stressed that the Fed will operate by meeting and called the decision a risk management step - causing investors to rush to take profits.
According to independent trader Tai Wong, this correction is strong and necessary, as long as gold does not penetrate the important support zone of 3,550 USD/ounce, the uptrend will remain steady.
The attractiveness of gold often increases when interest rates go down, because this non-yielding asset holding yield is no longer much lower than that of bonds or deposits. In addition, analysts said that this year's strong increase was reinforced by the massive accumulation of gold by central banks, global capital shifting away from the USD, demand for shelter from geopolitical and trade tensions, along with the widespread weakness of the greenback.
Deutsche Bank even raised its gold price forecast for 2026 to an average of $4,000/ounce, up from the previous forecast of $3,700.
Meanwhile, the US dollar strengthened following the Fed's decision, up 0.27% against the Japanese Yen and 0.36% against the Swiss French. The euro fell 0.38% to $1.1822 a year. USD Index Index increased by 0.35% to 96.96 points.
The decision to lower interest rates also caused a stir on Wall Street. The Dow Jones index increased by 0.57% to 46.018.32 points, while the S&P 500 and Nasdaq decreased by 0.1% and 0.32%, respectively. The MSCI global stock index also turned to decrease by 0.1% after setting a new record.
The stock market reacted to a sell-off immediately after the announcement, which is not surprising, said Mark Malek, New York-based chief investment officer of SiebertNXT. It is worth mentioning that investors were already too excited, so this adjustment is inevitable.
US bond yields rebounded after Mr. Powell's speech: 10-year yields increased by 4.6 basis points to 4.072%, 2-year terms increased by 3.9 basis points to 3.51%. This reflects expectations that the Fed may maintain lower interest rates but still leave many scenarios open.
In contrast to gold, oil prices fell as data showed increased US diesel inventories, raising concerns about slowing demand. Brent oil decreased by 0.76% to 68.22 USD/barrel, while WTI US decreased by 0.73% to 64.05 USD/barrel.
Regarding domestic gold prices, as of 6:00 a.m. on September 18, the price of SJC gold bars was listed by DOJI Group at VND130.3-132.3 million/tael (buy in - sell out), unchanged in both directions.
Bao Tin Minh Chau listed the price of SJC gold bars at 130.3-132.3 million VND/tael (buy in - sell out), unchanged in both directions.
Phu Quy Gold and Stone Group listed the price of SJC gold bars at 129.8-132.3 million VND/tael (buy in - sell out), unchanged in both directions.
