World gold prices rose in a short trading week after regaining the 4,100 USD/ounce mark. The improvement of the precious metal took place amid expectations of the Fed continuing to raise interest rates, the weakening USD and pressure from the energy market decreasing compared to the previous period.
In the first trading session of the week, gold prices traded around 4,079.5 USD/ounce but quickly underwent adjustment pressure as investors maintained cautious sentiment. At one point, the price fell to 3,941.87 USD/ounce, losing the psychological threshold of 4,000 USD/ounce before buying power returned.
As of the last trading session of the week, spot gold prices increased to about 4,180 USD/ounce, equivalent to an increase of about 2.75% compared to the beginning of the week. During the session, the precious metal at one point touched about 4,190 USD/ounce - the highest level in many weeks.
The above developments show that selling pressure has decreased significantly after many consecutive weeks of adjustment. The expectation that interest rates will no longer increase sharply as before has helped gold improve its attractiveness, while the weakening USD also supports the demand for holding precious metals of international investors.
Another factor contributing to improving market sentiment is that oil prices have retreated to near the zone before Middle East tensions escalated. As pressure from energy prices decreased, concerns about inflation also somewhat cooled down, thereby reducing pressure on monetary policy prospects and creating a more favorable environment for gold.
Besides short-term factors, the demand for gold accumulation of the official sector is still maintained. In the context that many countries continue to diversify reserve assets and increase the proportion of gold in the foreign exchange portfolio, this stable buying force continues to create a foundation to support the market, especially during price adjustment periods.
Technically, the fact that gold prices quickly regained the 4,100 USD/ounce mark after falling below 4,000 USD shows that the low price zone still attracts quite good buying power. If maintained above this zone, gold may continue to move towards higher levels. Conversely, adjustment pressure may return if the USD and US bond yields recover strongly.
In the short term, the trend of gold prices is likely to still depend on the fluctuations of the USD, US government bond yields and the developments of the energy market. However, the fact that long-term buying power is still maintained is considered a factor contributing to limiting the risk of a sharp drop in precious metals.
