World gold prices slightly decreased in the morning trading session of September 21 as the market assessed interest rate outlook after the Fed's latest interest rate hike decision.
As of 9:30 am on September 21 Vietnam time, spot gold price decreased by 0.17%, to 4,370.76 USD/ounce. December gold futures price decreased by 0.37%, to 4,408.45 USD/ounce.
Previously, spot gold was traded around 4,375 USD/ounce after a moderate increase last week. The market is monitoring statements from Fed officials this week to find more signals about the pace of interest rate adjustments in the near future.
The US Federal Reserve (Fed) agreed to raise interest rates by another 0.25 percentage points at a meeting on September 15-16. This is the Fed's first interest rate hike since 2023.
After this decision, the market continues to monitor the Fed officials' statements this week to assess the pace of interest rate adjustments in the coming months. US inflation has not yet reached the Fed's 2% target in more than 5 years, making monetary policy prospects continue to be of concern.
High interest rates often put pressure on gold because the precious metal does not generate income from interest. Therefore, any signal that interest rates may remain at a higher level for longer can affect the attractiveness of gold.
Oil prices are also a factor monitored by the market. Stable and cooling energy prices help reduce inflationary pressure, but if oil prices rise again, expectations of interest rates remaining at a higher level for longer may increase, thereby putting pressure on gold.
On the precious metals market, spot silver price increased by 0.29%, to 66.46 USD/ounce. Platinum price increased by 0.21%, to 1,806.16 USD/ounce. Palladium price increased by 0.48%, to 1,320.75 USD/ounce.
