Gold price today, May 8: Dropped after Fed's decision to keep interest rates unchanged

Giá vàng hôm nay, 8-5: Sụt giảm sau quyết định giữ nguyên lãi suất của Fed- Ảnh 1. — Gold price today is overshadowed

At 6:00 a.m. on May 8, the world spot gold price fell to 3,370 USD/ounce, down 25 USD from the highest level in last night's trading session of 3,395 USD/ounce.

Last night, the Fed announced that it would keep its benchmark interest rate unchanged at 4.25% - 4.5% from December 2024. This decision reflects the Fed's caution in the face of persistent inflationary pressures and the risk of slowing economic growth.

High interest rates make gold, a non-yielding asset, less attractive. Investors tend to switch to yield-generating channels such as bonds, putting selling pressure on the precious metal.

Fed Chairman Jerome Powell emphasized a "wait and see" stance, avoiding hasty adjustments to monetary policy. This statement made the gold market more cautious, limited buying power and contributed to pushing gold prices down.

Although the US dollar weakened slightly, this decrease was not enough to support gold prices. Meanwhile, international stocks rose thanks to China's economic stimulus policy. This overshadowed the appeal of gold prices today.

In Vietnam, as of the end of May 7, the listed price of SJC gold was 122.2 million VND/tael (selling price), while the price of gold rings reached 118 million VND/tael.