World gold prices continued to decline in the afternoon trading session of September 21, while the market continued to assess interest rate outlook after the Fed raised interest rates and signaled that it could continue to tighten policy.
As of 2:30 PM on September 21 Vietnam time, spot gold price decreased by 0.65%, to 4,349.81 USD/ounce. December gold futures price decreased by 0.86%, to 4,386.76 USD/ounce.
Previously, gold futures in the US closed the last session of the week up 0.6%, to 4,424.90 USD/ounce. For the whole week, gold prices increased by 0.36%, recording the first week of increase after the previous series of declines.
Gold prices are under pressure as the USD rises to its highest level in more than 7 weeks. A strong USD makes gold valued in greenbacks more expensive for buyers holding other currencies.
Meanwhile, Brent oil prices fell for the third consecutive session in the last session of the week. Cooling oil prices helped reduce concerns about inflationary pressure, thereby supporting gold prices. However, energy supply risks are still factors that the market is monitoring.
The US Federal Reserve (Fed) has raised interest rates by another 0.25 percentage points, to a range of 3.75–4% at a meeting on September 16 and signaled that it may continue to raise interest rates in the coming months.
According to the CME FedWatch tool, the market currently forecasts the probability of the Fed continuing to raise interest rates in October at 55%. High interest rates may reduce the attractiveness of gold because the precious metal does not generate income from interest.
The gold market is also monitoring the resistance zone of 4,400–4,440 USD/ounce. If the price crosses this zone, the upward momentum may be extended. However, developments in the first session of the week show that gold prices are under pressure when falling below the 4,400 USD/ounce mark.
In India, gold demand decreased during the week as buyers waited for lower prices. Meanwhile, investment demand in China remained stable.
On the precious metals market, spot silver prices fell 0.49%, to 65.94 USD/ounce. Platinum prices fell 0.38%, to 1,795.54 USD/ounce. Meanwhile, palladium prices rose slightly 0.02%, to 1,314.75 USD/ounce.
