Gold Prices Reach New Heights Amidst Interest Rate Adjustments

As of September 14, 2024, the global gold market continues to experience a surge in prices, driven by the impending interest rate adjustments by the Federal Reserve. The previous day’s record-breaking peak has been surpassed, with the precious metal showing no signs of slowing down.

The global gold price has seen a significant increase at the start of the US trading session. As of 9:00 p.m. (September 13, Vietnam time), the price of gold was trading at $2,577 per ounce, representing a 0.61% increase from the beginning of the session. The December 2024 gold futures price has also reached $2,604 per ounce.

The upward trend in gold prices can be attributed to the US Central Bank’s impending monetary policy adjustments. The decline in the US dollar and bond yields has led to an increase in gold demand, further fueling the price surge.

The US Dollar Index (DXY), which measures the greenback’s performance against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), currently stands at 100.94 points.

Domestic gold prices remain stable, with the price of 9999 gold bars at SJC listed at 78.5 million VND/tael (buy) and 80.5 million VND/tael (sell). Doji has also listed the price at 78.5 million VND/tael (buy) and 80.5 million VND/tael (sell).

Nymex crude oil prices have experienced a slight increase, trading at around $69.75 per barrel. The yield on the benchmark 10-year U.S. Treasury note has decreased to 3.648%.

In the foreign exchange market, the Japanese yen continues to strengthen, with the USD/JPY exchange rate reaching its lowest level since late December. This trend is expected to continue, driven by the prospect of the Federal Reserve cutting interest rates and the Bank of Japan raising interest rates.

The European Central Bank (ECB) has announced a 0.25% interest rate cut, bringing the rate down to 3.5%. This marks the second time this year that the ECB has cut interest rates, citing cooling inflation and economic growth in the region.

Gold Price Forecast

Experts predict that the Federal Reserve will begin cutting interest rates next week, which is expected to weaken the US dollar and have a positive impact on gold prices.

According to the World Gold Council’s 2024 Central Bank Gold Reserve Survey, 29% of respondents plan to increase their gold holdings over the next 12 months, the highest percentage since the survey began in 2018.

Ewa Manthey, commodity strategist at ING, believes that the Fed’s long-awaited rate cut will propel gold prices to new heights, while the US presidential election in November is also expected to boost gold prices until the end of the year.