Gold prices rise ahead of Fed meeting

September 19, 2023 10:28 Nhat Linh Print article

ANTD.VN - The gold market is trading relatively quietly, but gold prices still increased slightly with expectations that the Fed will keep interest rates unchanged and soon end the tightening cycle.

This morning, domestic gold prices continued to increase. SJC gold at Saigon Jewelry Company (SJC) increased by 150 thousand VND per tael compared to yesterday's closing price, reaching 68.50 - 69.22 million VND/tael (buy - sell).

At some other businesses, SJC gold prices also increased by 50,000 - 200,000 VND per tael. Specifically, the national gold brand listed by Bao Tin Minh Chau early this morning was 68.52 - 69.18 million VND/tael, an increase of 120,000 VND per tael for buying and 100,000 VND per tael for selling; DOJI 68.45 - 69.30 million VND/tael, an increase of 50,000 VND per tael; Phu Quy 68.50 - 69.25 million VND/tael, an increase of 200,000 VND for buying and 150,000 VND for selling...

The price of gold rings of different brands also increased by about 100,000 - 200,000 VND per tael. Accordingly, PNJ rings are trading at 56.90 - 57.90 million VND/tael; Bao Tin Minh Chau round rings are 57.18 - 58.08 million VND/tael...

Gold prices await important data after Fed meeting

In the world market, the spot gold price in the US market on September 18 (last night Vietnam time) increased by 9.4 USD per ounce, to 1,933.5 USD/ounce.

Despite the price increase, the trading market was relatively quiet, experts said that this quietness may continue until the Federal Open Market Committee (FOMC) meeting of the US Federal Reserve (Fed) ends on Wednesday afternoon.

Most experts expect the FOMC to keep interest rates steady at this meeting, and some even believe that a rate cut could come much sooner than expected.

Last week, markets digested the latest inflation figures showing that the US consumer price index (CPI) rose 0.6% in August – the biggest monthly increase this year. Compared to the same month last year, the index rose 3.7%, up from 3.2% in July.

The renewed price pressure was attributed to higher energy prices; while core inflation, which excludes energy and food, rose 4.3% year-on-year, slowing from July's 4.7%. The producer price index (PPI) also rose 0.7% last month - the strongest increase in more than a year.

According to some analysts, the Fed is in a difficult position. If it reacts too late to the economic slowdown, it could lead to a deeper recession. Meanwhile, the Fed does not want to be "accused" of repeating the scenario of the 1970s. That is the reason for those who expect the agency to cut interest rates sooner than expected, not excluding it from early next year.

If this signal is indeed sent after the meeting next Wednesday, gold prices will certainly react with a rally. But this time will still be a wait-and-see moment for investors.

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