Gold prices fell sharply when the US Federal Reserve (Fed) cut interest rates for the third consecutive time this year, by 25 basis points (0.25%).
Accordingly, on December 18, the Fed decided to continue easing monetary policy. Accordingly, the US reference interest rate was 4.25-4.5%, a decrease of 25 basis points (0.25%). This is the third consecutive time that this agency has reduced interest rates. The previous two times, the reductions were 0.5% and 0.25%, respectively.
The US Dollar Index rose more than 1% to a two-year high, making gold more expensive for holders of other currencies, while the benchmark US 10-year yield hit a fresh four-week high.
Gold prices fell sharply. (Photo: Kitco).
Traders are nervous about Fed Chairman Jerome Powell's comments that he will slow down the pace of rate cuts amid persistent inflation, according to independent metals trader Tai Wong. Wong said the most important piece of information the market is waiting for is the core PCE data due later in the week.
“ Gold is falling below $2,600 an ounce, which will make some speculators nervous ,” Wong added.
Gold price movements today
+ Domestic gold price
At 6:00 a.m. on December 19, the price of gold bars at Doji and SJC was listed at 82.6 - 85.1 million VND/tael (buy - sell), unchanged from early this morning.
Meanwhile, the price of gold rings is currently listed by Doji at 83.7 - 84.7 million VND/tael, an increase of 100,000 VND/tael compared to early this morning.
+ International gold price
The world gold price listed on Kitco is at 2,584 USD/ounce, down 62 USD/ounce compared to early this morning. Gold futures last traded at 2,586 USD/ounce.
Gold Price Forecast
Traders are now watching key US growth and inflation data due later this week that could further shape expectations around monetary policy.
Gold remains in a long-term uptrend, but the precious metal is likely to continue to consolidate in the short term and into the first quarter of 2025, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Source: https://vtcnews.vn/gia-vang-hom-nay-19-12-roi-tu-do-vang-mat-hon-60-usd-ounce-ar914702.html
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