The price of gold on the Kitco floor at 9:00 p.m. (September 12, Vietnam time) was trading at $2,548.8/ounce, up 1.46% from the beginning of the session. The price of gold futures for delivery in December 2024 on the Comex New York floor was trading at $2,553.8/ounce.

At the beginning of the trading session on September 12 (US time), the world gold price increased sharply, at one point reaching 2,555.1 USD/ounce, surpassing the previous record of 2,531.06 USD/ounce on August 20.

Thus, this is a new record high price that the precious metal has just set.

World gold prices increased sharply due to the pressure being removed when the European Central Bank (ECB) continued its monetary policy easing cycle, cutting interest rates by 25 basis points to 3.5%. At the same time, the refinancing rate and marginal lending rate decreased to 3.65% and 3.9%, respectively.

Screenshot 2024 09 12 212224.png
World gold sets new record. Photo: Hoang Ha

Gold had been under pressure earlier as expectations of a 50 basis point interest rate cut by the US Federal Reserve (Fed) at its policy meeting next week cooled after a report of an increase in August consumer prices.

According to the latest report, the US CPI in August increased by 2.5% compared to the same period, lower than the forecast of 2.6% and significantly lower than the 2.9% in July.

According to experts, the August CPI report shows that core US inflation remains high, not enough to make the Fed decide to cut interest rates by 50 basis points.

Bob Haberkorn, senior market strategist at RJO Futures, said that inflation has not fallen as expected, and if the Fed cuts 50 basis points next week, it will mean the US central bank is surrendering to inflation.

A Reuters poll found that a majority of economists surveyed expected the Fed to cut rates by 25 basis points. Only nine of 101 economists predicted a 50 basis point cut.

In the domestic market, at the end of the session on September 12, the price of 9999 gold bars at SJC was 78.5 million VND/tael (buy) and 80.5 million VND/tael (sell). SJC listed the price of gold rings at 77.3-78.6 million VND/tael (buy - sell).

Doji Hanoi and Ho Chi Minh City both listed gold bar prices at 78.5 million VND/tael (buy) and 80.5 million VND/tael (sell).

Gold Price Forecast

The increase in core CPI has more or less reinforced the possibility that the Fed will cut by 25 basis points next week, said Tai Wong, an independent metals trader.

Central bank demand for gold is a key catalyst for the gold rally, said Roukaya Ibrahim, a strategist at BCA Research. She said gold continues to outperform other commodities as demand for the precious metal increases, especially from central banks in emerging markets.

Ms. Ibrahim commented that the role of precious metals as a natural hedge against inflation and currency devaluation. At the same time, in an environment of geopolitical tension, gold remains the top choice.

Gold price today, September 11, 2024 increased sharply, gold rings regained the record mark . Gold price today, September 11, 2024, on the international market increased sharply again, pushing the price of gold rings up by 150,000 VND per tael, approaching the record mark of 78.65 million VND/tael (sold). 9999 gold bars remained unchanged.