Gold Prices Surge: Will the Fed’s Latest Decision Send Them Soaring
- The world gold price is expected to continue its upward trend, with the market eagerly awaiting the Federal Reserve's interest rate decision.
- The Federal Reserve's interest rate decision, scheduled for September 18, will be the main focus of the market this week.
- The US central bank has maintained its key lending rate at a two-decade high of 5.25-5.5% for the past 14 months.
Gold Price Forecast: Market Awaits Fed’s Interest Rate Decision
The world gold price is expected to continue its upward trend, with the market eagerly awaiting the Federal Reserve’s interest rate decision. As of September 16, 2024, the world gold price closed the trading week at 2,577 USD/ounce, while the December 2024 gold futures price traded at 2,606 USD/ounce.
The Federal Reserve’s interest rate decision, scheduled for September 18, will be the main focus of the market this week. Fed Chairman Jerome Powell’s speech at the Jackson Hole conference in late August reinforced the likelihood of a decision to cut interest rates at the next meeting.
The US central bank has maintained its key lending rate at a two-decade high of 5.25-5.5% for the past 14 months. However, with the labor market cooling and the U.S. economy continuing to grow, policymakers have decided it is time to cut interest rates. Markets are pricing in a 55% chance of a 25 basis point cut in U.S. interest rates and a 45% chance of a 50 basis point cut in the next few days, experts say.
In addition to the Fed, the Bank of England and the Bank of Japan will also announce monetary policy decisions this week, which may impact gold prices.
As of September 14, the price of 9999 gold bars at SJC was 78.5 million VND/tael (buy) and 80.5 million VND/tael (sell). Doji listed it at 78.5 million VND/tael (buy) and 80.5 million VND/tael (sell).
Gold Price Forecast: Industry Experts Weigh In
The latest Kitco News weekly gold survey shows that industry experts and retail investors are bullish on gold’s potential for higher prices. According to the survey, 62% of Wall Street analysts predict gold prices will rise, 23% see gold prices falling, and 15% see gold prices moving sideways.
An online survey found that 57% of respondents see gold prices rising, 25% see gold prices falling, and the rest see gold prices moving sideways. Gold is hitting a new record high, supported by falling interest rates and the dollar, said Marc Chandler, CEO of Bannockburn Global Forex.
The rally is being fueled by monetary easing from major central banks and the looming US presidential election. Analysts say the next price range for gold could be up to $2,600 an ounce.