On the morning of October 17th, global gold prices saw a modest increase, rising by $2 per ounce to $4,165 on Kitco. This uptick ended a three-session losing streak, supported by a weaker US dollar and falling US Treasury yields. The US dollar index dropped 0.5%, while the yield on 10-year US Treasury bonds hit a three-week low, boosting gold's appeal as a non-yielding asset.
The price outlook remains pressured by US monetary policy, with stronger-than-expected economic data reinforcing the Federal Reserve's hawkish stance. The market estimates a 72% chance of unchanged rates in October and a 92% probability of a rate hike in December. However, demand from Chinese central banks and investors remains strong, with the People's Bank of China adding 23 tonnes of gold to its reserves last month.
Domestically, the price of SJC gold bars in Vietnam held steady at 140.3 - 143.3 million VND per ounce, unchanged from the previous day. Similarly, the price of SJC gold rings remained stable at 139.8 - 142.8 million VND per ounce.
Experts predict continued volatility in the short term, with gold prices influenced by the Federal Reserve's monetary policy signals. Ole Hansen of Saxo Bank and Ryan McKay of TD Securities both anticipate no rate hike in October, though persistent inflation could keep rates high for longer. The support zone for gold prices is seen at $4,000 - $4,100 per ounce, with resistance at $4,200.