Gold Prices Struggle to Break Above $4,300 Amid US Interest Rate Hopes

World gold prices continued to decline on September 24, struggling to break above the $4,300 per ounce mark. The market's focus remains on the US Federal Reserve's (Fed) policy outlook after it raised interest rates by an additional 0.25 percentage points, bringing the interest rate range to 3.75-4%. Expectations of further interest rate hikes are making investors more cautious about gold.

The spot gold price decreased by 0.06% to $4,284.78 per ounce as of 2:30 PM on September 24th Vietnam time. December gold futures price also decreased slightly by 0.02%, to $4,317.37 per ounce. The market is currently focused on the Fed's policy outlook after the interest rate hike.

The USD and US bond yields continue to be important factors for gold prices. A strong USD makes gold valued in greenbacks more expensive for buyers holding other currencies. In addition, US economic data shows that business activity in September increased sharply, while price pressure is still present, increasing concerns about inflation and strengthening expectations that monetary policy may continue to be maintained in a tightening state.