World gold prices on August 18 continued to maintain above the 4,400 USD/ounce mark, after two consecutive increasing sessions, amid a weakening USD and market expectations of the Fed's ability to continue raising interest rates this year.
As of 9:25 am Vietnam time, spot gold prices increased by 0.63% to 4,404.47 USD/ounce. Meanwhile, spot gold contracts fell 0.29% to 4,460.75 USD/ounce.
Gold's upward momentum was supported when the USD strength index fell to its lowest level since May, after a series of weaker-than-expected US economic data. The weakening greenback made gold cheaper for buyers holding other currencies.
The swap market is also no longer fully assessing the possibility of the Fed continuing to raise interest rates before the end of the year as it did a week ago. However, the risk of monetary policy tightening is still a factor putting pressure on gold – a non-rotating asset.
Gold prices have recovered above the support level of 4,000 USD/ounce recently thanks to investor demand and gold buying activity again by central banks, especially China. The upward momentum last week also put this precious metal above the 100-day moving average for the first time since April.
This week, investors will follow the minutes of the Fed's July policy meeting, scheduled to be released on Wednesday, to look for more signals about the interest rate roadmap. Fed Chairman Kevin Warsh's statements at the Jackson Hole conference at the end of the month were also of particular interest to the market.
On other precious metals markets, spot silver prices fell 0.44% to 65.49 USD/ounce, platinum prices fell 0.67% to 1,761.40 USD/ounce, and palladium prices fell 0.43% to 1,323 USD/ounce.
Meanwhile, the energy market increased slightly. Brent oil futures for October reached 91.15 USD/barrel, up 0.31%, while WTI oil for October reached 84.08 USD/barrel, up 0.41%.
