World gold prices continued to fall in the trading session on September 23 as the USD strengthened and tough signals from US Federal Reserve (Fed) officials reinforced expectations of further monetary policy tightening.
As of 5:30 PM on September 23rd Vietnam time, spot gold prices decreased by 0.94%, to 4,317.65 USD/ounce. December gold futures contracts decreased by 0.52%, to 4,353.50 USD/ounce.
Previously, spot gold prices fell 0.9% to 4,316.78 USD/ounce, while December gold futures fell 0.5% to 4,354 USD/ounce.
The USD rising to its highest level in 2 months is creating more pressure on gold. As the greenback strengthens, gold valued in USD becomes more expensive for buyers holding other currencies.
Meanwhile, the market continues to assess the possibility of the Fed maintaining high interest rates for a longer time. The Fed increased interest rates by another 0.25 percentage points in a meeting last week, bringing the interest rate range to 3.75–4%, and signaling that it may continue to raise interest rates before the end of the year.
New statements from Fed officials continue to strengthen this expectation. The market currently values the probability of the Fed raising interest rates in October at around 53%, according to the CME FedWatch tool. High interest rates often reduce the attractiveness of gold because the precious metal does not generate interest income.
Gold prices are currently continuing to fluctuate in a relatively narrow range of 4,300–4,400 USD/ounce. In the short term, the diễn biến of the USD, bond yields and oil prices, along with new signals from the Fed, will continue to be factors dominating the market.
On the precious metals market, spot silver prices fell by 2.55%, to 65.30 USD/ounce. Platinum prices fell by 2.42%, to 1,791.01 USD/ounce. Meanwhile, palladium futures for December delivery fell by 1.20%, to 1,290.25 USD/ounce.
