Gold price today: Continues to be under pressure from high interest rates

September 22, 2023 09:53 Nhat Linh Print article

ANTD.VN - World gold prices have dropped sharply after tightening messages from Fed officials, however, domestic gold prices are still struggling at high levels.

In yesterday's trading session, after a slight increase in the early morning, domestic gold prices cooled down and closed the session at a slightly lower price than the opening price. This morning, the precious metal market had mixed movements.

Saigon Jewelry Company (SJC) listed the price of SJC gold early this morning at 68.45 - 69.17 million VND/tael, an increase of 100,000 VND/tael compared to the closing price yesterday.

Meanwhile, Phu Quy Gold Company kept the national gold brand price unchanged at 68.35 - 69.05 million VND/tael; DOJI Group reduced 100 thousand VND per tael to 68.30 - 69.20 million VND/tael; Bao Tin Minh Chau Company increased 100 thousand VND/tael for buying, increased 70 thousand VND/tael for selling, to 68.48 - 69.10 million VND/tael...

The price of gold rings generally decreased slightly. SJC rings decreased by 100 thousand VND per tael to 56.95 - 57.90 million VND/tael; PNJ rings remained at 57.10 - 58.10 million VND/tael; Bao Tin Minh Chau round rings decreased by 30 thousand VND per tael to 57.13 - 58.03 million VND/tael...

Giá vàng trong nước giữ ở mức cao, bất chấp vàng thế giới giảm khá mạnh ảnh 1

Domestic gold prices remain high, despite the sharp drop in world gold prices.

On the world market, the spot gold price updated on Kitco closed the session on September 21 (last night, Vietnam time) with a decrease of more than 10 USD per ounce, down to 1,919.5 USD/ounce. Converted according to the USD exchange rate excluding taxes and fees, the world gold price is cheaper than the domestic price by about 11 million VND/tael.

The drop in world gold prices was a result of tighter-than-expected messages from US Federal Reserve (Fed) officials at their monetary policy meeting last September. In yesterday's session, after a sharp increase thanks to the decision to keep interest rates unchanged, gold prices fell again when information about the Fed Chairman's press conference was released.

Fed Chairman Jerome Powell said a soft landing was possible, so while rates were held steady at this meeting, most Fed officials favored a rate hike by the end of 2023 and continued tightening of monetary policy through 2024.

However, Fed officials also admitted that the "soft landing" could be threatened by factors beyond the Fed's control, such as rising energy prices or a strike by US auto workers... These things affect the labor market.

George Milling-Stanley, chief gold strategist at State Street Global Advisors, an investment management firm, said the gold market is lacking momentum but the investment potential for the precious metal remains good.

He said that gold's ability to maintain a solid support level above $1,900/ounce amid the difficulties is a positive signal, and the market is ready for a new uptrend.

Interest rates are expected to stay high for longer, but Milling-Stanley said this is not a significant threat to gold as the Fed's decision midweek is creating little new momentum for the US dollar.

Currently, the USD-Index - a measure of the greenback's strength against a basket of six other major currencies - is at nearly 105.5 points this morning, up slightly from 105.1 points yesterday.

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