Gold Rebounds to $4,368 After Fed Hikes Rates
Global gold prices surged 2.44% to $4,368.60 per ounce following the Federal Reserve's first interest rate hike in three years. Domestic Vietnamese prices fell, creating a significant divergence from international markets.
Global gold prices climbed to $4,368.60 per ounce on September 17. This marks a 2.44 percent increase from the previous trading session. The rise followed the US Federal Reserve's decision to raise interest rates by 0.25 percentage points. This is the first hike in three years.
Domestic gold prices in Vietnam moved in the opposite direction. SJC gold bars traded at 142.8 million VND for buying and 145.8 million VND for selling. The buy-sell spread widened to 3 million VND per ounce. Major brands including PNJ, Doji, and Bao Tin Minh Chau adjusted their prices downward.
Fed Hike Drives Global Rebound
Fed Chairman Kevin Warsh cited persistent inflation as the primary reason for the rate increase. The policy rate now stands at 3.75 to 4 percent. Officials indicated that further hikes are likely in 2026. The central bank aims to reduce inflation to its 2 percent target.
Market participants had anticipated this move for weeks. Geopolitical tensions in the Middle East also contributed to investor sentiment. The CME FedWatch tool shows nearly 50 percent of traders expect another 0.25 point hike. Gold absorbed the shock of the rate decision without a sustained decline.
Domestic Prices Diverge From Global
Vietnamese retailers cut prices despite the global surge. Pure gold rings dropped by 100,000 to 300,000 VND per tael. Selling prices at many brands remain above 145 million VND per tael. The spread between buying and selling prices varies by brand, ranging from 2.8 to 4 million VND.
PNJ listed gold bars at 142,800 to 145,800 VND per ounce in all regions. Doji set ring prices at 142.5 to 146.5 million VND per tael. Bao Tin Minh Chau traded rings at 142.7 to 146.7 million VND per tael. SJC listed plain gold rings at 142.5 to 145.3 million VND per tael.
Support Levels Determine Next Move
Gold must hold above $4,300 per ounce to maintain momentum. A break above resistance could push prices toward $4,400. The $4,500 level remains a key target if bond yields cool down. Failure to hold the $4,300 support risks a pullback to lower levels.
Investors monitor the distinction between a technical rebound and a new trend. The current rally depends on sustained buying pressure. European banks are also moving gold out of the US, according to reports cited by GN auto markets. This shift adds to the complexity of global bullion flows.
