Gold prices are soaring to new heights, with Kitco listing the metal at a historic high of $2,589 per ounce, marking a $21 increase from yesterday’s opening. This surge in gold prices can be attributed to optimistic signals from the Federal Reserve ahead of this week’s monetary policy meeting.
Phillip Streible, a market strategist at Blue Line Futures, attributes the rise in gold futures to market expectations of a 50-basis point rate cut. He predicts a potential dip in gold futures if the Federal Reserve opts for a more conservative 25-basis point reduction.
All eyes are on the Federal Reserve’s interest rate decision this Wednesday. According to CME’s FedWatch tool, traders are forecasting a 61% likelihood of a 50-basis point cut.
Gold prices reach new heights. (Photo: Minh Đức)
UBS analyst Giovanni Staunovo weighs in, suggesting that the first US rate cut is imminent and that further reductions are likely in the coming months. While short-term volatility may arise from any changes to the Fed’s dot plot chart, Staunovo remains confident in gold’s upward trajectory in the months ahead.
Gold Price Movements:
+ Domestic Gold Prices:
As of 6 am on September 17, gold prices at Doji remained unchanged from the previous day’s opening, listed at 78.5 – 80.5 million VND per tael (buying – selling).
SJC gold prices followed a similar trend, holding steady at 78.5 – 80.5 million VND per tael (buying – selling).
+ International Gold Prices:
Kitco listed international gold prices at $2,589 per ounce, reflecting a $21 increase from the previous day’s opening. Gold futures last traded at $2,590 per ounce.
Gold Price Forecast:
According to UOB, a leading Asian bank, central banks in emerging markets and Asia are expected to increase their gold purchases due to concerns over global trade tensions and geopolitical conflicts. This bodes well for the precious metal’s outlook.
UOB analysts predict that these uncertainties could propel gold prices to $2,700 per ounce by mid-2025, with the potential to surpass $3,000 per ounce in the long term.
Some experts caution that gold is currently trading at peak levels, and profit-taking by investors could lead to a period of sideways or slightly downward price movement in the near term.
ANZ analysts attribute macroeconomic and geopolitical concerns, the upcoming US elections, and potential stock market volatility as compelling reasons to increase gold investments. They forecast gold prices to reach $2,700 per ounce in the short term and peak at $2,900 per ounce by the end of 2025.
