Gold prices hit historic high after Fed's decision to keep interest rates unchanged

DNVN - In the trading session on March 19, gold prices jumped to an all-time high after statements by US Federal Reserve Chairman Jerome Powell and the decision not to change interest rates as predicted by experts.

Gold price on March 7, 2025: World and domestic gold prices both decreased slightly

However, the Fed also signaled the possibility of cutting interest rates by 0.5 percentage points by the end of 2025.

As of 2:57 a.m. Vietnam time, spot gold rose 0.5% to $3,047.80 an ounce, after hitting a record high of $3,051.99 an ounce earlier in the session. Meanwhile, gold futures in the US were almost flat at $3,041.20 an ounce.

Gold hit a new record high shortly after the Fed meeting, as both stocks and bonds rallied, according to independent metals trader Tai Wong. He also said that gold is maintaining a strong upward momentum after breaking above $3,000 an ounce, and predicted that the trend will continue due to concerns about instability and inflationary pressures. Currently, the market is witnessing a strong buying trend for gold.

The Fed kept interest rates in the range of 4.25% - 4.50%. Fed officials revised their inflation forecasts higher this year and cut their economic growth forecasts following adjustments to US tariff policies.

On March 19, Mr. Powell said the process of controlling inflation could face obstacles and take place more slowly this year due to the impact of the new US tariff policy.

US President Donald Trump has just raised import tariffs on steel and aluminum to 25%, a policy that took effect last week. At the same time, he also announced that reciprocal and sectoral tariffs will be applied from April 2.

Gold, considered a safe haven in times of inflation or economic uncertainty, has risen more than 15% so far in 2025. Traders now see a 66% chance of the Fed cutting rates at its June 2025 meeting, up from a previous forecast of 57%. As interest rates fall, gold becomes more attractive because it does not offer a fixed yield.

In the Vietnamese market, at 6:37 a.m. on March 20, Saigon Jewelry Company listed the price of SJC gold in Hanoi at 98.00 - 99.50 million VND/tael (buy - sell).

Cao Thong (t/h)

Source: https://doanhnghiepvn.vn/kinh-te/gia-vang-cham-dinh-lich-su-sau-quyet-dinh-giu-nguyen-lai-suat-cua-fed/20250320085732244