World gold prices continued to increase in the latest trading session, regaining the 4,100 USD/ounce mark after experiencing a period of strong correction. The main driving force came from bottom-fishing buying as prices retreated to low levels, in the context that the market is still closely monitoring geopolitical developments and US monetary policy.
In this afternoon's trading session, gold prices slightly adjusted. As of 2:45 PM Vietnam time, spot gold prices increased by 0.98% to 4,112.11 USD/ounce. August spot gold futures contracts increased by 0.97% to 4,115.84 USD/ounce. This is the highest level in about two weeks, marking a significant improvement after a period of strong correction.
This development appeared in the context that US government bond yields remained high, while tensions in the Middle East showed no signs of cooling down. However, the fact that gold prices still increased shows that buying power is strong enough to compensate for pressure from the high interest rate environment.
A notable sign is that investment capital in gold ETF funds has clearly improved. The amount of gold held by ETF funds increased by about 7.4 tons in just one session, the strongest increase in more than a month. This shows that a part of investors have returned to the market after a period of deep gold price decline.
In addition, data from the US Commodity Futures Trading Commission (CFTC) also reflects a more positive sentiment from speculators. The number of net buying positions for gold increased by 4,293 contracts, raising the total buying position to 119,147 contracts.
While cash flow is returning, the market is still facing pressure from US interest rate expectations. After oil prices rebounded due to tensions in the Middle East, concerns about inflation continue to make it possible for the market to maintain a high interest rate level.
According to market data, the probability of the Fed raising interest rates in September is still high, while the yield of 10-year US government bonds remains around 4.63%. This is a factor that often reduces the attractiveness of gold because the precious metal does not yield yields.
However, price diễn biến shows that the area around 4,000 USD/ounce is becoming an important support threshold when buying power appears quite strongly every time the price retreats to this area. The fact that gold quickly regained the 4,100 USD/ounce mark reflects that accumulation demand is still present, despite pressure from interest rates and the USD.
