World gold prices maintained their upward momentum in the trading session on September 3rd, after a strong recovery in the previous session. The precious metal was supported when US President Donald Trump signaled that new military operations in the Middle East may not last long, thereby easing concerns about inflation from energy prices.
As of 8:56 am Vietnam time, spot gold prices on the international market were at 4,408.75 USD/ounce, up 20.58 USD, equivalent to 0.47% compared to the previous session. Meanwhile, December gold futures contracts increased by 0.89%, to 4,453.96 USD/ounce.
The recovery of gold takes place in the context of cooling oil prices after Mr. Trump said that the latest attacks on Iran are likely to take place in a short time. Previously, fighting raised concerns about a prolonged war, which could disrupt energy supplies and push inflation back.
The reduced risk of prolonged conflict helps limit inflationary pressure from oil prices - a factor that could cause central banks to maintain tight monetary policy for longer. This is a positive development for gold, as the precious metal is often under pressure in a high interest rate environment.
In addition, the USD weakened in the session on September 2nd after the yen rose sharply. This development has made traders closely monitor the possibility that Japanese officials will continue to take steps to support the domestic currency.
A weaker USD often makes gold more attractive to investors holding other currencies, thereby supporting the price of precious metals.
The prospects of the Fed's monetary policy continue to be an important factor for the gold market. New York Fed Chairman John Williams said there is evidence that inflation in the US continues to cool down as the impact of tariffs gradually decreases. According to him, higher energy prices have not yet spread to other service groups.
These assessments contribute to reducing concerns that the Fed may have to raise interest rates to control inflation. Previously, Fed Chairman Kevin Warsh's tough speech on August 28 increased expectations that the US central bank could raise interest rates at the upcoming meeting.
The market also received signals from the US labor market. New data shows that US businesses recruited more workers in August but at a more moderate pace. This could reduce pressure on the Fed to maintain or raise interest rates at a high level.
In the coming sessions, investors will continue to focus on US economic data, especially the official jobs report. These figures may significantly impact the Fed's policy expectations and thereby orient gold prices.
On the precious metals market, spot silver price increased by 0.1%, to 65.38 USD/ounce. Platinum price increased by 0.58%, to 1,770.27 USD/ounce. Meanwhile, palladium price increased by 0.16%, to 1,369.25 USD/ounce.
Technically, gold prices are recovering after undergoing strong selling pressure in previous sessions. Maintaining above the 4,300 USD/ounce zone will help strengthen the short-term support zone, while higher levels will be targets to monitor if the upward momentum is maintained.
In the coming time, the developments of oil prices, the USD, US bond yields, jobs data and expectations about the Fed's interest rate policy will continue to be important factors determining the direction of gold prices.
