Gold prices rose ahead of the Fed meeting.

19/09/2023 10:28 Nhat Linh Print article

ANTD.VN - The gold market saw relatively quiet trading, but gold prices still rose slightly along with expectations that the Fed will keep interest rates unchanged and soon end its tightening cycle.

This morning, domestic gold prices continued their upward trend. SJC gold at Saigon Jewelry Company (SJC) increased by 150,000 VND per ounce compared to yesterday's closing price, reaching 68.50 - 69.22 million VND/ounce (buying price - selling price).

At some other businesses, the price of SJC gold also increased by 50,000 to 200,000 VND per tael. Specifically, the national gold brand, Bao Tin Minh Chau, listed the price at the beginning of the morning at 68.52 - 69.18 million VND/tael, an increase of 120,000 VND per tael in the buying price and 100,000 VND per tael in the selling price; DOJI at 68.45 - 69.30 million VND/tael, an increase of 50,000 VND per tael; Phu Quy at 68.50 - 69.25 million VND/tael, an increase of 200,000 VND in the buying price and 150,000 VND in the selling price...

The price of gold rings from various brands has also increased by approximately 100,000 to 200,000 VND per tael. Accordingly, PNJ rings are trading at 56.90 - 57.90 million VND/tael; Bao Tin Minh Chau round rings at 57.18 - 58.08 million VND/tael...

Gold prices are awaiting key data following the Fed meeting.

On the global market, the spot gold price in the US market on September 18th (last night in Vietnam time) increased by $9.4 per ounce, reaching $1,933.5 per ounce.

Despite the price increase, trading remained relatively quiet, and experts believe this quietness may continue until the Federal Reserve's Federal Open Market Committee (FOMC) meeting concludes on Wednesday afternoon.

Most experts expect the FOMC to keep interest rates stable at this meeting; some even believe that a rate cut may be implemented much sooner than anticipated.

Last week, the market digested the latest inflation figures showing that the US consumer price index (CPI) rose 0.6% in August – the largest monthly increase this year. Compared to the same period last year, the index has increased 3.7%, up from 3.2% in July.

New price pressures are attributed to higher energy prices; while core inflation, excluding energy and food, rose 4.3% year-on-year, slowing from July's 4.7%. The Producer Price Index (PPI) also rose 0.7% last month – its sharpest increase in over a year.

According to some analyses, the Fed is in a relatively difficult position. A delayed response to slowing economic growth could lead to a deeper recession. Meanwhile, the Fed doesn't want to be accused of repeating the scenario of the 1970s. That's why some expect the agency to cut interest rates sooner than anticipated, possibly as early as the beginning of next year.

If this signal is indeed given after Wednesday's meeting, gold prices will certainly react with a surge. But the timing remains a matter of waiting for investors.

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