World gold prices recovered in the morning session of September 8, returning above the 4,400 USD/ounce mark as the USD weakened and buying power reappeared after a strong correction.
As of 9 am on September 8 Vietnam time, spot gold prices increased by 0.71%, to 4,437.64 USD/ounce. Meanwhile, December gold futures contracts increased by 0.13%, to 4,482.21 USD/ounce.
Gold prices rose as the USD continued to weaken against the Japanese Yen. The Bloomberg Dollar Spot Index, a measure of the strength of the USD, fell 0.1% after falling 0.2% in the previous session. Gold tends to move in the opposite direction to the greenback, so weaker USD helps gold valued in USD become more competitive for buyers holding other currencies.
Spot gold prices have increased by 0.7%, exceeding 4,435 USD/ounce, thereby erasing the decrease in the previous session. Since jumping from the bottom of nearly 4,000 USD/ounce in July, gold prices have mainly fluctuated in a relatively narrow range around the 4,400 USD/ounce mark.
According to the Fed interest rate tracking tool, the market is currently betting 56.4% on the Fed's ability to raise interest rates at the meeting on September 16. Tightening monetary policy is often detrimental to gold because the precious metal does not generate yields. US production and consumer price data released this week are expected to provide more signals about policy prospects.
However, the medium-term outlook for gold still receives support from risk hedging needs in the investment portfolio. Gold buying activities by central banks continue to appear, while some major asset managers have increased their holdings of precious metals in recent weeks.
After a strong recovery in August, the market currently needs a new momentum for gold to enter the next uptrend. The fact that gold prices are maintained around the 4,400 USD/ounce range shows that the precious metal is still in an accumulation phase after recovering from the bottom of nearly 4,000 USD/ounce.
On the precious metals market, spot silver prices increased by 1.13%, to 66.92 USD/ounce. Platinum prices increased by 1.02%, to 1,841.60 USD/ounce, while palladium prices increased by 1.12%, to 1,418.75 USD/ounce.
