Gold prices are always sensitive to US interest rate adjustments. Lower interest rates will weaken the USD, but significantly increase the attractiveness of non-yielding assets such as gold.
Gold prices rose on the afternoon of September 5 after recent data increased the possibility that the US Federal Reserve (Fed) will conduct a major interest rate cut this September.
Meanwhile, oil prices edged up on September 5 after falling to multi-month lows earlier, as major producers may delay planned output increases next month.
Gold prices rise on Fed's ability to "forcefully" lower interest rates
Spot gold rose 0.5% to $2,506.00 an ounce at 2:30 p.m. (Vietnam time). US gold futures rose 0.4% to $2,536.10 an ounce.
New data showed that US employment fell to a 3-1/2-year low in July 2024, raising concerns about the health of the US economy . But the decline may not be enough to warrant a Fed rate cut of up to half a percentage point.
The market's focus will be on the non- farm payrolls report due out on Friday (September 6 local time).
Earlier, San Francisco Fed President Mary Daly said interest rate cuts were needed to maintain a healthy labor market.
Investors are cautiously awaiting the U.S. nonfarm payrolls report, which could raise the possibility of a 50 basis point rate cut and send gold higher, said Tim Waterer, market analyst at financial services firm KCM Trade.
The expert added that gold prices may not peak until 2024.
He sees $2,600 an ounce as a possible target if the Fed makes a series of rapid rate cuts before the end of 2024.
Gold prices are always sensitive to US interest rate adjustments. Lower interest rates will weaken the USD, but significantly increase the attractiveness of non-yielding assets such as gold.
In the market of other precious metals, spot silver price increased 0.3% to 28.37 USD/ounce.
Platinum price increased by 1% to 911.58 USD/ounce. In the domestic market, at the end of the session on September 5, Saigon Jewelry Company listed the price of SJC gold in the Hanoi market at 78.50 - 80.50 million VND/tael (buy-sell).
Oil prices rebound as supply expected to be constrained
Oil prices edged up on Thursday after falling to multi-month lows earlier, as major producers may delay planned output increases next month.
Specifically, Brent crude oil for November 2024 delivery increased 35 cents (equivalent to 0.48%) to $73.05/barrel in the early afternoon, after falling as much as 1.4% in the previous session and closing at its lowest level since June 27, 2023.
US light sweet crude oil (WTI) for October 2024 delivery also increased by 35 cents (0.51%) to $69.55/barrel after falling 1.6% on September 4.
The bearish sentiment in the oil market seems to have eased after news that the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC producers (OPEC+) are reconsidering increasing production.
OPEC+ is discussing postponing a planned oil production increase that was due to start in October because prices have fallen sharply, sources said.
Last week, OPEC+ prepared to increase production by 180,000 barrels per day in October as part of a plan to gradually ease its 2.2 million barrels per day oil cut program.
But the prospect of an end to the Middle East dispute and weak Chinese demand have prompted the group to reconsider the decision.
Another factor supporting oil prices was a report from the American Petroleum Institute (API) showing that US crude oil inventories fell by 7.431 million barrels last week, higher than analysts' expectations for a decrease of 1 million barrels.
The US Energy Information Administration (EIA) weekly oil inventory report will be released on Thursday (local time).
Asian stocks mixed
Asian markets traded mixed on Thursday after a volatile session in the previous session, as traders cautiously assessed the prospect of a US interest rate cut.
In Japan, the Nikkei 225 index in Tokyo fell 1.1% to 36,657.09 points.
In China, major indexes were mixed. Hong Kong's Hang Seng Index fell 0.1% to 17,444.30. Meanwhile, the Shanghai Composite Index in Shanghai rose 0.1% to 2,788.31.
Markets in Seoul, Singapore and Mumbai also declined. In contrast, stocks in Sydney, Wellington, Taipei, Manila and Bangkok rose.
World stocks had a chaotic session on September 4 after weak US manufacturing activity combined with a decline in technology stocks spooked the market.
While some of the sell-off was seen as profit-taking, news that the manufacturing sector contracted for a fifth straight month raised concerns that the world's largest economy could fall into recession.
With a Fed rate cut at its September meeting all but certain, observers say recent data is supporting the possibility of a 50 basis point cut, as opposed to the 25 previously expected.
Kelvin Wong, an expert at financial trading platform OANDA, warned that fears of a “hard landing” in the US economy have become the focus of the market again, as many observers worry that the Fed has been slow to cut interest rates.
In the domestic market, at the end of the session on September 5, the VN-Index decreased by 7.59 points (0.59%) to 1,268.21 points. The HNX-Index also lost 1.18 points (0.50%) to 234.96 points./.
Source: https://baolangson.vn/thi-truong-ngay-5-9-vang-tang-gia-nho-kha-nang-fed-ha-lai-suat-sau-hon-5020626.html
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