Gold Prices Slump Amid US Interest Rate Hike Fears

Gold prices continued to fall on August 31 due to the market's uncertainty about US monetary policy. The possibility of the Fed raising interest rates in September increased investors' concerns, making gold less attractive as an investment.

As of 2:18 PM Vietnam time, spot gold price decreased by 0.39%, to $4,437.50 per ounce. December gold futures price decreased by 0.91%, to $4,488.74 per ounce.

Independent analyst Tai Wong said that the market still needs more data to determine whether US inflation is really returning to the 2% target of the Fed. According to him, tough statements from Fed Chairman Kevin Warsh can be seen as a message to maintain pressure on inflation expectations.