Gold prices fluctuate, focus on the Fed

Song Anh |

Gold prices fluctuate in a narrow range as the market waits for more signals about Fed interest rates and the strength of the USD.

World gold prices rose slightly in the trading session on August 7 as investors assessed the impact of new tensions in the Strait of Hormuz and the consequences for the interest rate policy of the US Federal Reserve (Fed).

As of 4:26 PM Vietnam time, spot gold price reached 4,257.93 USD/ounce, up 13.2 USD, equivalent to 0.31% in the past 24 hours. December gold futures contracts increased by 0.37%, to 4,315.55 USD/ounce.

The diễn biến of precious metals takes place in the context of the market continuously updating information from the Middle East. However, the market still expects gold prices to close the week with an increase of nearly 5%, after at one point exceeding 4,300 USD/ounce in the previous session thanks to expectations of the Hormuz shipping line being reconnected.

Gold's upward momentum is also under pressure as new tensions increase speculation that the Fed may continue to raise interest rates if inflation rises again. The market currently values about 60% of the Fed's ability to raise interest rates in September.

Meanwhile, the USD almost went sideways after the previous increase session, causing gold prices to fluctuate in a narrow range.

In other precious metals markets, spot silver prices increased 1.15% to 62.22 USD/ounce, platinum decreased 0.27% to 1,372.25 USD/ounce, and palladium increased 0.63% to 1,740.06 USD/ounce.

In the energy market, Brent oil increased by 1.2% to 83.48 USD/barrel, while WTI oil increased by 1.01% to 78.07 USD/barrel, reflecting concerns that supply could be disrupted if tensions in the Strait of Hormuz continue to escalate.

Song Anh
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