Gold Prices Surge: Will the Fed’s Interest Rate Decision Send Them Soaring Even Higher
Gold Prices Today: September 6, 2024
The international gold market saw a surge in prices today, September 6, 2024, as investors bet on the US Central Bank cutting interest rates this month.
The current gold price on the Kitco floor is trading at $2,518.9/ounce, a 0.92% increase from the beginning of the session. Meanwhile, the price of gold futures for delivery in December 2024 on the Comex New York floor is trading at $2,546.8/ounce.
At the start of the US market trading session, the world gold price experienced a significant increase. Investors are optimistic about the US Federal Reserve (Fed) cutting interest rates this month, following the release of pessimistic economic data.
However, recent economic data suggests that the Fed may not be able to cut interest rates by 50 basis points. Instead, a 25 basis point cut is more likely.
Peter A. Grant, vice president and senior metals strategist at Zaner Metals, notes that gold prices are under pressure as expectations for a 50 basis point Fed rate cut are fading. A 25 basis point cut is now more likely.
In addition to the potential interest rate cut, the US dollar is near a two-week high. This strengthening of the US dollar is reducing the attractiveness of gold.
Gold Prices in Vietnam
At the close of the session on September 5, the price of 9999 gold bars at SJC was 78.5 million VND/tael (buy) and 80.5 million VND/tael (sell). SJC listed the price of gold rings at 77.3 - 78.6 million VND/tael (buy – sell).
Doji Hanoi listed at 78.5 million VND/tael (buy) and 80.5 million VND/tael (sell). Doji Ho Chi Minh City bought SJC gold at 78.5 million VND/tael and sold at 80.5 million VND/tael.
Bao Tin Minh Chau listed the price of Golden Dragon gold bars at 77.38-78.58 million VND/tael (buy – sell).
Gold Price Forecast
Rhona O’Connell, an analyst at StoneX, notes that the trend in precious metals prices is still up, and the declines are only short-term.
According to Mike Ingram, a market analyst at Kinesis Money, gold’s resistance level will be above $2,510/ounce. Gold prices will soon break the record level of $2,531/ounce and move towards $2,543/ounce.
Kelvin Wong, an analyst at Oanda, predicts gold prices could reach $2,640 an ounce this year if the Fed begins a long-term rate-cutting cycle.
Looking ahead, Bernard Dahdah, a precious metals analyst at Natixis, predicts that gold prices will average around $2,600 per ounce in 2025.