World gold prices continued to rise in the afternoon trading session of September 17, as the USD weakened and oil prices continued to cool down, while the market assessed the latest interest rate decision of the Fed.
As of 4:30 PM on September 17 Vietnam time, spot gold price increased by 0.98% to 4,305.86 USD/ounce.
Previously, spot gold prices had at one point reached their lowest level in nearly 6 weeks on September 16. In the session of September 17, the precious metal recovered, with spot prices increasing by more than 1% in the session.
The weakening USD is creating support for gold prices. The depreciation of the greenback makes gold valued in USD more attractive to buyers holding other currencies.
Meanwhile, oil prices continued to fall, extending the downward trend of the previous session. Oil prices cooled down as concerns about supply disruptions eased, thereby creating more support for the gold market.
The market is also assessing the latest policy decision of the Fed. The Fed has raised interest rates on September 16 and signaled that it may continue to raise interest rates in the coming months.
High interest rates often reduce the attractiveness of gold because the precious metal does not generate interest income. However, independent analyst Ross Norman believes that the market may have increased positions excessively before the interest rate increase decision, and after the decision is announced, these positions are being adjusted.
The upward momentum of gold in the session on September 17 also occurred when spot prices and futures contract prices had opposite movements. Spot prices recovered, while December futures contracts fell nearly 1%.
On the precious metals market, spot silver price increased by 1.43% to 63.90 USD/ounce. Platinum price increased by 1.16% to 1,776.02 USD/ounce. Palladium price increased by 1.32% to 1,292.60 USD/ounce.
