Gold prices return above the 4,000 USD/ounce mark
At the recorded time (9:25 PM on July 21 - Vietnam time), the world gold price was listed around the threshold of 4,065.8 USD/ounce.
Previously, gold prices fluctuated from 3,998.8-4,085.1 USD/ounce. This development brought the precious metal back above the 4,000 USD/ounce zone and tested the resistance level near 4,064 USD/ounce.
Silver prices fluctuated in the range of 56-59.37 USD/ounce. After recovering from last week's low, silver prices returned to the critical response zone of 58.53-59.44 USD/ounce.
Fed policy expectations continue to put pressure
The latest US economic data makes the market more cautious with the possibility that the US Federal Reserve (Fed) will soon redirect monetary policy.
Previously, lower-than-expected consumer price index and producer price index data reduced pressure on a short-term interest rate adjustment. However, positive retail sales, reduced unemployment claims, strong production recovery in Philadelphia and improved consumer sentiment made it impossible for investors to completely bet on a policy turning point.
The market still forecasts that the Fed is likely to keep interest rates unchanged at the July meeting. However, the September meeting is still being closely monitored, as the probability of the Fed raising interest rates is being valued at around 64%.
The yield of 10-year US Treasury bonds was traded around 4.60%, while the USD index maintained near 101 points.
The prospect of interest rates remaining at a high level for a long time continues to limit the strong increase of precious metals.
Tensions in the Strait of Hormuz remain an important factor
The situation in the Strait of Hormuz continues to be tense. This maritime route is still maintained but under great pressure from military activities and the risk of transport disruption.
Brent oil prices fell below 90 USD/barrel after intermediaries pushed for a new ceasefire agreement. WTI oil prices were traded around 82 USD/barrel.
The impact of oil prices on gold is happening in two directions. Geopolitical risks boost defense asset holding demand, but high oil prices can increase inflationary pressure, support bond yields and limit gold's upward momentum.
Technically, gold buyers regained short-term advantage after the price successfully protected the 4,000-4,020 USD/ounce support zone.
Gold prices have also surpassed the 50-period moving average at 4,021.55 USD/ounce and the 100-period moving average at 4,038.93 USD/ounce.
Traders are following the next statements of Fed officials, the change in September interest rate expectations and the risk of new disruptions in the Strait of Hormuz or transport routes in the Red Sea.
This article is not an investment recommendation. Gold and silver prices may fluctuate sharply, investors need to carefully consider their goals, financial capacity and risk acceptance before making a decision.
