World gold prices slightly decreased in the morning session of September 22 after losing momentum in the previous trading session, as oil prices cooled down and interest rate expectations continued to be monitored by the market.
As of 10:00 AM on September 22 Vietnam time, spot gold prices slightly decreased by 0.05% to 4,341.41 USD/ounce. December gold futures fell 0.07% to 4,380.75 USD/ounce.
Previously, spot gold prices at one point traded around 4,360 USD/ounce, recovering after falling the most in a week in the previous session. Gold prices were under pressure in the first session of the week as the USD increased and the market continued to assess the possibility of the US Federal Reserve (Fed) maintaining a high interest rate policy.
The sharp drop in oil prices in recent sessions is creating more support for gold. Oil prices have fallen more than 9% in the previous 4 sessions, thereby reducing concerns about inflationary pressure.
Cooling oil prices could reduce pressure on the Fed to continue raising interest rates to control inflation. This is a supporting factor for gold, which does not generate income from interest.
Meanwhile, the market continues to monitor statements from Fed officials to assess interest rate outlook after the Fed raised interest rates in the meeting last week. The possibility of interest rates continuing to rise is still a factor putting pressure on the precious metal.
Investment cash flow is also a noteworthy factor. About 50 tons of gold flowed into gold-backed ETFs in September, marking the third consecutive month of increased capital flow.
On the precious metals market, spot silver price increased by 0.19% to 66.15 USD/ounce. Spot platinum price decreased by 0.58%, to 1,794.10 USD/ounce. Meanwhile, palladium futures for December delivery decreased by 0.35%, to 1,311.75 USD/ounce.
