Recorded at 8:10 am on September 22 (Vietnam time), spot gold price traded around 4,361.9 USD/ounce, up 0.44%. Meanwhile, spot silver price also maintained its upward momentum, reaching about 66.41 USD/ounce, up 0.78%.
Precious metals are still receiving attention in the context of the market balancing between two opposing impacts: One is the need for safe haven from geopolitical instability and fiscal concerns, the other is pressure from the US tight monetary policy.
Previously, in the US trading session, gold and silver prices were under pressure as the stock market recovered strongly, oil prices fell and US Treasury bond yields cooled down slightly. These factors reduced the need to seek defensive assets in the short term.
North American stock markets simultaneously increased points. S&P 500 index increased by 1.5%, Nasdaq Composite increased by 2.3%, while Dow Jones increased by 0.7%. In Europe, many major markets also recorded green when STOXX Europe 600 increased by 1%, DAX of Germany increased by 1.1%, Euro Stoxx 50 increased by 1.3%, CAC 40 of France increased by 0.9% and FTSE 100 of the UK increased by 0.8%.
The focus of investors is still the interest rate outlook of the US Federal Reserve (Fed). After a 0.25-percentage point increase, bringing the target interest rate to the 3.75-4% range, the market has not yet ruled out the possibility of the Fed continuing to raise interest rates in the near future.
A series of recent US economic data shows that the economy still maintains resilience. August retail sales increased by 1.2%, and initial jobless claims fell to 196,000. These signals make expectations of a tougher monetary policy persist.
The yield of 10-year US Treasury bonds has slightly decreased to the 4.95-4.96% range, but still maintained close to the 5% mark - a level that the market is particularly interested in. High yields often put pressure on gold because precious metals do not generate a fixed cash flow.
Besides the interest rate factor, oil price movements also affect market sentiment. Crude oil prices fell for the fourth consecutive session as investors expect supply from the Middle East to gradually recover and international diplomatic efforts to help reduce disruption risks.
Brent oil closed the session around 100.34 USD/barrel, down 3.4%, while WTI oil fell to about 95.78 USD/barrel, down 4.5%. The cooling of oil prices partly reduced inflationary pressure, while also causing defensive cash flow to shift to riskier assets such as stocks.
However, long-term concerns about the US financial situation are still creating momentum for gold. Large public debt, increased interest payment costs and high demand for bond issuance may continue to affect the financial market in the near future.
On the technical market, the upward trend of gold is still maintained as buying power returns. The important resistance zone in the short term is determined around 4,400-4,407 USD/ounce. If it crosses this zone, gold prices may head towards the 4,443 USD/ounce zone and further to 4,475 USD/ounce.
In the opposite direction, if losing the support level of 4,334 USD/ounce, gold prices may be under adjustment pressure to the area of 4,304 USD/ounce, even 4,261 USD/ounce.
For silver, the 67.27-67.34 USD/ounce area is an important resistance level. If it passes this area, the precious metal may expand its upward momentum towards 71.18 USD/ounce and 73.14 USD/ounce. Conversely, the 65.26 USD/ounce area is considered a support area to be monitored.
In the current context, gold prices are being simultaneously affected by monetary policy, bond yields, the USD and geopolitical factors. The market may therefore continue to experience strong fluctuations as investors re-evaluate interest rate prospects in the coming time.
Update on domestic gold prices
The article only updates the developments of the gold market and factors affecting the price of precious metals, not investment recommendations.
