World gold prices rebounded in the trading session on August 27, recovering from the previous decline as investors continued to monitor US interest rate prospects and wait for new signals from the US Federal Reserve (Fed).
As of 8:51 am Vietnam time, spot gold price increased by 0.79%, to 4,630.79 USD/ounce. Meanwhile, December gold futures price increased by 0.69%, to 4,685.56 USD/ounce.
Previously, gold prices fell 0.70% in the session of August 26, down to 4,626.18 USD/ounce, after rising sharply in previous sessions. The previous upward momentum brought gold prices to their highest level since May 14 in the session of August 25.
Gold prices are currently continuing to be supported by concerns about the US fiscal situation and developments in the bond market. The US Treasury Department's move to strengthen the repurchase of long-term government bonds last week contributed to boosting demand for gold.
However, the upward momentum of the precious metal is taking place in the context that the market is still cautious in the face of new signals about US monetary policy. After inflation data is released, the USD and US bond yields may fluctuate, thereby directly affecting the attractiveness of gold.
The focus of the market is now shifting to Fed Chairman Kevin Warsh's speech at the Jackson Hole seminar on August 28. This is considered one of the important events that can shape interest rate expectations in the near future.
If the Fed sends softer signals on monetary policy, the USD and bond yields may be under pressure, thereby creating more room to increase gold prices. Conversely, a tough stance could put the precious metals under profit-taking pressure after a recent strong rally.
In addition, investment capital in gold is also showing signs of improvement. Gold-backed ETF funds monitored by Bloomberg added more than 28 tons of gold last week, the strongest increase since January. Gold prices have also surpassed the 200-day moving average, an important technical indicator for long-term trends.
On the precious metals market, spot silver price increased 2.13%, to 69.5655 USD/ounce. Platinum prices increased 1.15%, to 1,856.40 USD/ounce, while palladium increased 1.02%, to 1,340.25 USD/ounce.
After increasing by about 14% in August, gold prices are facing an important test as the market waits for signals from the Fed. The diễn biến of the USD, US bond yields and the message at Jackson Hole will continue to be important factors for the direction of the precious metal in the coming sessions.
