Gold Prices Regain Momentum as Investors Weigh Fed Rate Outlook

Global gold prices have regained momentum after experiencing a sharp decline, as investors continue to assess the impact of the Federal Reserve's interest rate outlook.

The market has been keeping a close eye on signals from the Fed, which recently increased interest rates by 0.25 percentage points and hinted at further tightening. This move has put pressure on gold prices in the short term, as high interest rates make profitable assets more attractive, reducing gold's relative advantage.

Despite this, gold prices have been recovering, with spot gold increasing by 0.25% to $4,352.63 per ounce and December gold futures falling 0.14% to $4,393.47 per ounce as of 9:30 am on September 18 Vietnam time.

The recovery is also attributed to a decline in US Treasury bond yields across various terms, making gold more attractive compared to bonds that pay interest.

Additionally, oil prices have continued to fall for the third consecutive session, reducing pressure from energy costs and inflation. This has contributed to gold's positive momentum.