World gold prices rebounded in the trading session on September 16 as oil prices cooled down, while investors focused on monitoring the monetary policy decision of the US Federal Reserve (Fed). The market has largely considered the possibility of the Fed continuing to raise interest rates, but messages about management orientation in the coming time are still important factors affecting precious metals.
As of 3:10 PM on September 16 (Vietnam time), spot gold prices on the international market increased by 0.72%, to 4,323.7 USD/ounce. Previously, according to international market data, spot gold prices once increased by 0.8%, to 4,326.83 USD/ounce in Asian trading, after hitting a one-month low at the beginning of the week.
Following the trend, other precious metals also recorded an increase. World silver prices increased by 1.15%, to 64.3 USD/ounce. Platinum prices increased by 0.23%, reaching 1,780 USD/ounce, while palladium increased by 0.78%, to 1,295 USD/ounce.
Fed becomes the focus of the gold market
Investors are waiting for the Fed's interest rate decision with the expectation of finding more signals about monetary policy in the near future. According to the CME FedWatch interest rate tracking tool, the market is assessing a high probability that the Fed will implement a 25 basis point interest rate hike.
Interest rates are an important factor for gold prices because this precious metal does not generate yields. When interest rates rise, the opportunity cost of holding gold is usually higher, putting pressure on investment demand. Conversely, softer signals from the Fed may reduce expectations of monetary tightening, thereby supporting gold prices.
If the Fed issues a tougher message, gold prices may be under downward pressure. Conversely, signals indicating less drastic policies may help the precious metal recover.
Besides interest rates, the market is also monitoring the diễn biến of the USD, US government bond yields and geopolitical factors – factors that often strongly impact cash flow seeking safe haven assets.
Oil prices cool down, geopolitical tensions still support gold
Oil prices fell in the latest trading session after data showed that crude oil inventories in the US increased unexpectedly. However, supply risks are still being noted as the market assesses developments in the Middle East region.
Geopolitical tensions continue to be a certain supporting factor for gold. Instability in key areas may boost demand for assets considered safe havens.
The diễn biến of gold prices in recent times shows that this precious metal still maintains its resistance to pressure from high interest rates. Fiscal concerns, reflected in high long-term government bond yields, along with political risks in the US, are factors supporting gold prices.
However, the market is still in a sensitive phase as all attention is focused on the Fed's message. Any change in the assessment of inflation, economic growth or the interest rate roadmap could create strong fluctuations for gold prices in the short term.
Update on domestic gold prices
The article only updates the developments of the gold market and factors affecting precious metal prices, not investment recommendations.
