Gold prices “hold their breath” waiting for the Fed’s interest rate decision

July 26, 2023 10:41 Nhat Linh Print article

ANTD.VN - Although the Fed will almost certainly announce a 25 basis point interest rate hike early tomorrow morning Vietnam time, the gold market is still holding its breath, waiting for the messages that will be sent out after the meeting.

This morning, the domestic SJC gold price turned down again by 100,000 VND per tael, to around 66.55 - 67.15 million VND/tael.

Meanwhile, gold rings of various brands increased slightly with an increase of 50,000 - 100,000 VND/tael. Accordingly, SJC 99.99 rings were listed early this morning at 56.00 - 57.00 million VND/tael; PNJ round rings 56.10 - 57.15 million VND/tael; Bao Tin Minh Chau round rings 56.18 - 57.03 million VND/tael.

In the world , the spot gold price in the US market last night, Vietnam time, closed with an increase of nearly 10.5 USD/ounce, to 1,864.5 USD/ounce.

Gold price “holds its breath” waiting for Fed’s interest rate decision photo 1

Gold prices could see a new rally if the Fed signals a halt to rate hikes after this meeting.

Gold prices are awaiting important news, which is the decision to raise interest rates by the US Federal Reserve (Fed), which will be announced on the afternoon of July 26 local time (early tomorrow morning Vietnam time).

It is almost certain that the Fed will announce and implement a 0.25% interest rate hike after pausing interest rates at the previous meeting. At the most recent meeting, Chairman Powell and other members of the Fed expressed their view that two more interest rate hikes are needed this year.

However, recent data including CPI and wholesale (PPI) data reports have confirmed that the Fed's recent actions have had a significant impact in reducing inflation. So the question is whether the US Federal Reserve will change its actions in the future based on the new positive economic data.

Gold traded in a narrow range while awaiting the conclusion of the meeting and subsequent remarks from the Fed leader.

If the Fed does indeed signal a pause in rate hikes after its current meeting, the precious metals market will be supported and another rate hike could be on the cards.

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