World gold prices recovered before closing the last session of the week, supported by cooling oil prices, helping to reduce concerns about inflationary pressure. Buying power returned, bringing gold towards its first week of increase after 3 consecutive weeks of decline.
The world market closed at 4 am Vietnam time, when spot gold price was at 4,378.23 USD/ounce, up 0.84%. December gold futures contracts increased by 0.37%, to 4,415.90 USD/ounce.
Spot gold prices at one point increased to 4,390.11 USD/ounce, the highest level since September 11. Overall for the week, gold increased by about 1%.
Brent oil prices fell for the third consecutive session. The cooling of oil prices helped reduce inflationary pressure, thereby supporting gold prices. Previously, precious metal investors had increased selling positions with the expectation that gold prices would fall after the US interest rate decision. However, when gold prices did not fall as expected, selling positions quickly narrowed, supporting price recovery.
The US Federal Reserve (Fed) has raised interest rates by another 0.25 percentage points, to a range of 3.75–4% in the meeting on September 16. According to the CME FedWatch tool, the market currently forecasts the probability of the Fed continuing to raise interest rates in October at 55%.
The USD rose to its highest level in more than 7 weeks, making gold valued in greenbacks more expensive for buyers holding other currencies.
Technically, gold prices are testing the resistance zone of 4,400–4,440 USD/ounce. According to Gaffney, if it passes this zone, gold prices may open up room for further increase.
Spot silver prices rose 2.3% to $66.70/ounce, platinum rose 2.2% to $1,812.50/ounce and palladium rose 1.5% to $1,310.20/ounce in the session recorded by Reuters. These metals are all heading towards a week of price increases.
