Gold price recorded an increase of 1.9% last week

Gold prices moved sideways in the trading session on September 26 (Vietnam time) after higher-than-expected US GDP figures have reduced expectations for further interest rate cuts, while investors await important inflation data to be released later in the day.

Spot gold prices remained at 3,749.24 USD/ounce at 15,17 Vietnam time, recording an increase of 1.9% for the week. Gold prices set a record of $3,790.82/ounce this week on Tuesday. December gold contract increased by 0.2% to 3,779.4 USD/ounce.

The report released on September 25 showed the US economy grew faster than estimated in the second quarter, while the number of new jobless claims decreased.

Han Tan - Head of Market Analysis at Nemo.money commented: "Gold is holding around the $3,700/ounce range thanks to the resilience of the US economy, thereby causing the US Federal Reserve's (FED) interest rate cut forecast to decrease by 18 percentage points by the end of 2025 this week".

According to the CME FedWatch tool, investors now see an 87% probability of an interest rate cut in October and a 62% in December, down from 91% and 76% before the GDP data.

The next focus is the US personal consumption expenditure (PCE) index - the FED's preferred inflation measure - released at 7:30 p.m. Vietnam time, expected to increase by 0.3% compared to the previous month and 2.7% compared to the same period, according to a Reuters survey.

The market does not expect the upcoming PCE figures to be surprising, showing that inflation is still under control. However, if it is higher than expected, gold may be under slight downward pressure, Han Tan added.

Gold has benefited from a low interest rate environment and when economic and geopolitical instability increased. Regarding trade, US President Donald Trump announced the imposition of new tariffs on imported drugs, trucks and furniture from October 1.

In other metals, spot silver fell 0.5% to $45.01/ounce; platinum rose 0.6% to $1,539.44/ounce, near a 12-year high; palladium moved sideways at $1,250.4/ounce. All three metals are heading for upward for the week.