Gold price today: Continues to be under pressure from high interest rates

09/22/2023 09:53 Nhat Linh Print article

ANTD.VN - World gold prices have dropped sharply after tightening messages from Fed officials, however, domestic gold prices are still struggling at high levels.

In yesterday's trading session, after a slight increase in the early morning, domestic gold prices cooled down afterwards and closed the session at a price slightly lower than the opening price. This morning, the precious metal market had mixed developments.

Saigon Jewelry Company (SJC) listed the price of SJC gold early this morning at 68.45 - 69.17 million VND/tael, an increase of 100,000 VND/tael compared to yesterday's closing price.

Meanwhile, Phu Quy Gold Company kept the national gold brand price unchanged at 68.35 - 69.05 million VND/tael; DOJI Group reduced the price by 100,000 VND per tael to 68.30 - 69.20 million VND/tael; Bao Tin Minh Chau Company increased the price by 100,000 VND/tael for buying and 70,000 VND/tael for selling, to 68.48 - 69.10 million VND/tael...

The price of gold rings generally decreased slightly. SJC rings decreased by 100 thousand VND per tael to 56.95 - 57.90 million VND/tael; PNJ rings remained at 57.10 - 58.10 million VND/tael; Bao Tin Minh Chau round rings decreased by 30 thousand VND per tael to 57.13 - 58.03 million VND/tael...

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Domestic gold prices remain high, despite the sharp drop in world gold prices.

On the world market, the spot gold price updated on Kitco closed the session on September 21 (last night, Vietnam time) with a decrease of more than 10 USD per ounce, down to 1,919.5 USD/ounce. Converted according to the USD exchange rate excluding taxes and fees, the world gold price is about 11 million VND/tael cheaper than the domestic price.

The drop in world gold prices was the result of tighter-than-expected messages from US Federal Reserve officials at their September monetary policy meeting. In yesterday's session, after rising sharply due to the decision to keep interest rates unchanged, gold prices fell again when information about the Fed Chairman's press conference was released.

Fed Chairman Jerome Powell said a soft landing was possible, so while rates were held steady at the meeting, most Fed officials favored a rate hike by the end of 2023 and continued tightening of monetary policy through 2024.

However, Fed officials also admitted that a "soft landing" could be threatened by factors beyond the Fed's control, such as rising energy prices or a strike by US auto workers... These things affect the labor market.

George Milling-Stanley - Chief Gold Strategist at State Street Global Advisors - an investment management unit - said that the gold market is lacking momentum but the investment potential for this precious metal is still good.

He said that gold's ability to maintain a solid support level above $1,900/ounce amid the difficulties is a positive signal, and the market is ready for a new uptrend.

Interest rates are expected to stay high for longer, but Milling-Stanley said this is not a significant threat to gold as the Fed's decision midweek is providing little fresh impetus to the US dollar.

Currently, the USD-Index - a measure of the greenback's strength against a basket of six other major currencies - is at nearly 105.5 points this morning, up slightly from 105.1 points yesterday.

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