Gold market continues to benefit from Fed's policy decisions

World gold prices continued to increase by more than 1% in the trading session on September 19 thanks to the impact of the US Federal Reserve's (Fed) decision to sharply reduce interest rates.

At 01:02 on September 20, Vietnam time, spot gold price increased 1.2% to 2,590.47 USD/ounce, while gold futures price increased 0.6% and closed at 2,614.60 USD/ounce.

Spot gold hit a record high of $2,599.92 an ounce in the previous session after the Fed cut interest rates by half a percentage point to a range of 4.75-5.0%. Fed policymakers also forecast another half a percentage point cut this year, 1 percentage point next year and half a percentage point in 2026.

Alex Ebkarian, CEO of Allegiance Gold, said the market is pricing in more and larger rate cuts, as the US is running both a budget and trade deficit. This, he said, would weaken the dollar further. The expert said the “resonance” between geopolitical risks, the current deficit, the low government bond yield environment and the weak dollar will boost gold prices.

A global trend of loose monetary policy, strong gold buying by central banks and geopolitical concerns have pushed gold prices to record highs several times. Gold prices have hit a six-month high and are up about 24% this year so far.

In other precious metals markets, spot silver prices rose 3.5% to $31.11 an ounce, and platinum prices rose 2.3% to $990.45 an ounce.

Meanwhile in Vietnam, at the end of September 19, Saigon Jewelry Company (SJC) announced the selling price of SJC gold bars at 79.8 - 81.8 million VND/tael (buy - sell).

According to VNA

Source: https://doanhnghiepvn.vn/kinh-te/thi-truong-vang-tiep-tuc-huong-loi-tu-quyet-sach-cua-fed/20240920072425644