World gold prices today, July 21, extended their recovery momentum after a strong correction last week as the market continued to monitor the monetary policy outlook of the US Federal Reserve (Fed). In that context, US bond yields and the USD are still considered important factors affecting the diễn biến of precious metals.
As of 9:43 am Vietnam time, spot gold price increased by 0.84% to 4,037.57 USD/ounce. Meanwhile, August gold futures contracts increased by 0.57% to 4,038.90 USD/ounce.
The diễn biến of the energy market continues to attract the attention of investors. Oil prices remain at a high level after many increasing sessions, increasing concerns that inflationary pressure may last. This makes the market continue to consider the possibility that the Fed will maintain a high interest rate level for a long time.
High interest rates often reduce the attractiveness of gold because the precious metal does not bring yields. Along with that, the stable USD also contributes to limiting the upward momentum of gold prices.
The focus of the market is currently on the Fed's monetary policy meeting at the end of the month. According to developments in the interest rate swap market, the possibility of the Fed keeping interest rates unchanged in the upcoming meeting is still dominant. However, investors still assess the possibility of at least one interest rate hike before the end of 2026.
Besides expectations for monetary policy, investors are also continuing to monitor US economic data to assess inflation prospects and the Fed's management roadmap in the coming months.
Other precious metals also simultaneously increased in price in this morning's trading session Vietnam time. Silver prices increased by 1.97% to 57.47 USD/ounce, platinum increased by 0.6% to 1,607.15 USD/ounce, while palladium increased by 0.44% to 1,262 USD/ounce.
In the short term, the diễn biến of oil prices, the USD and signals from the Fed will continue to be factors that the market will monitor to determine the next trend of gold prices.
