Gold prices today, September 19, 2024, on the world market fluctuated strongly after the Fed's interest rate decision. WGC experts emphasized that gold is seen as an immediate risk hedge, while also benefiting from the potential for lower interest rates.
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Update gold price today 9/19/2024
Domestic gold prices have not had any noticeable fluctuations. At the end of the trading session on the afternoon of September 18, Saigon Jewelry Company announced the selling price of SJC gold bars at 80 - 82 million VND/tael (buy - sell).
DOJI, Bao Tin Minh Chau and Phu Quy still maintained at 80 million VND/tael (buy) and 82 million VND/tael (sell), unchanged from the previous session.
For gold rings, Saigon Jewelry Company listed the price at 77.90 - 79.20 million VND/tael (buy - sell), unchanged from the previous trading session. Similarly, Bao Tin Minh Chau also kept the price at 77.98 - 79.18 million VND/tael (buy - sell) for gold rings, with no fluctuations.
World gold price increased by 8.6 USD/ounce - recorded by World and Vietnam Newspaper at 7:00 p.m. on September 18 - at 2,577.6 - 2,578.6 USD/ounce.
Investors are closely watching the interest rate decision from the US Federal Reserve (Fed).
If the Fed cuts rates by just 0.25 percentage points, it could disappoint across the board, sending the dollar back higher and putting downward pressure on gold prices.
However, investors are not only interested in the rate cut level, but also waiting for the speech of Fed Chairman Jerome Powell after the meeting.
Policy signals from Mr. Powell will shape the future of the USD and directly impact the precious metals market.
In addition, experts also predict that gold prices could reach $2,700/ounce by 2025.
Experts from Societe Generale also believe that the precious metal could reach an average of $2,800/ounce in 2025.
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| Gold price today September 19, 2024: Gold price 'surged' after Fed's decision, market 'aimed' at $2,800/ounce. (Source: Shutterstock) |
Summary of SJC gold bar prices at major domestic trading brands at closing times of trading session on the afternoon of September 17 :
Saigon Jewelry Company: SJC gold bars 80 - 82 million VND/tael; SJC gold rings 77.9 - 79.2 million VND/tael.
Doji Group: SJC gold bars 80 - 82 million VND/tael; 9999 round rings (Hung Thinh Vuong): 78.0 - 79.2 million VND/tael.
PNJ system: SJC gold bars 80 - 82 million VND/tael; PNJ 999.9 plain gold rings: 78.0 - 79.2 million VND/tael.
Phu Quy Gold and Silver Group: SJC gold bars: 80 - 82 million VND/tael; Phu Quy 999.9 round gold rings: 78.0 - 79.2 million VND/tael.
SJC gold price at Bao Tin Minh Chau is listed at: 80 - 82 million VND/tael. The price of plain round gold rings at Vang Rong Thang Long is listed at 77.98 - 79.18 million VND/tael.
Gold benefits from low interest rate potential
“There is a real risk that market expectations are too optimistic about a 50 basis point rate cut,” said Matt Simpson, senior analyst at City Index. “If that doesn’t happen, bond yields and the US dollar could rise sharply, putting pressure on gold.”
If the Fed cuts just 0.25 percentage points and sets expectations for a similar cut in the future, gold prices could fall below $2,570 an ounce, Mr. Simpson added.
On September 18, the World Gold Council (WGC) released a report assessing the gold market in August 2024 and forecasting the direction of the precious metal in the coming time.
According to WGC, August was a remarkable month for the gold market when prices increased by 3.6% to $2,513/ounce.
On August 20, the price of gold reached an all-time high of $2,557 per ounce before falling slightly at the end of the month. Recently, at the close of trading on September 16, the world spot gold price increased to a record $2,582, at one point during the session it even reached $2,589.
The WGC found that the main factors driving the gold price increase were the weakening of the US dollar and the slide in 10-year bond yields as the Fed showed the possibility of more interest rate cuts.
"However, gold's strong investment performance in July has negatively impacted returns, as high returns typically lead to lower gains in subsequent periods. At the same time, India's recent reduction in gold import duties has boosted the country's gold demand, as seen in strong demand from jewellery retailers and consumers," the WGC noted.
Meanwhile, global gold-backed exchange-traded funds (ETFs) have seen inflows for four consecutive months, mainly from Western fund investments.
Gold is seen as an immediate hedge against risk, while also benefiting from the potential for lower interest rates, said Shaokai Fan, head of Asia-Pacific (excluding China) and global head of central banking at the WGC.
"The Fed meeting will play a key role in shaping market sentiment and expectations," said Shaokai Fan.
Source: https://baoquocte.vn/gia-vang-hom-nay-1992024-gia-vang-noi-song-vi-fed-co-mot-rui-ro-thi-truong-ngam-moc-2800-usdounce-286733.html
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