Gold market continues to benefit from Fed's policy decision

Tạp chí Doanh NghiệpTạp chí Doanh Nghiệp20/09/2024


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.

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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 to 5.0%. Fed policymakers also forecast another half a percentage point cut this year, one 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, given the US’s budget and trade deficits. 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.

Global monetary easing, combined with strong central bank buying and geopolitical concerns, have sent gold prices soaring to record highs. Gold prices have hit a six-month high and are up about 24% this year so far.

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

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

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