SJC Gold Holds 147.6m VND as Fed Hikes Rates
Domestic gold prices stayed flat Monday morning while spot gold dipped slightly after the Federal Reserve's first rate hike since 2023.
Key points
- SJC gold held at 147.6 million VND per ounce, maintaining a 10.5 million VND premium over global spot prices.
- Spot gold fell 0.27 percent to 4,365.50 USD as traders assessed the Federal Reserve's first rate hike since 2023.
- Analysts predict a potential rebound, with CPM Group targeting 4,590 USD per ounce by early October.
SJC gold trading held at 147.6 million VND per ounce on Monday morning. This price remained unchanged from the previous Friday close. The stable valuation reflects market caution after the Federal Reserve's recent decision to raise interest rates. Traders are currently assessing the long-term impact of this monetary shift on inflation and asset values. The domestic market showed little movement despite global volatility in precious metals.
The domestic premium over world prices remains significant at 10.5 million VND. Spot gold traded at 4,365.50 USD per ounce during the New York session. This global price represents a 0.27 percent decline from the previous close. The gap between local and international values persists due to tax and fee structures. Market participants continue to monitor this differential closely for potential adjustments.
Domestic premiums persist amid global shifts
Vietnam.vn reports that Saigon Jewelry and Phu Quy Group maintained their quoted prices. Mi Hong Company increased its buying price by 100,000 VND slightly. The spread between buying and selling prices narrowed in some domestic outlets. These minor adjustments indicate limited liquidity in the immediate trading session. Retail investors observed these changes without triggering broader price corrections. The market remains in a wait-and-see mode regarding future direction.
Fed rate hike drives market uncertainty
The Federal Reserve raised interest rates by 25 basis points in mid-September. This marks the first increase since 2023 in an effort to cool inflation. Inflation has remained above the central bank's two percent target for five years. Analysts expect several Fed officials to speak publicly later this week. Their statements will provide crucial clues about the pace of future monetary policy. Markets are pricing in a 58 percent chance of another hike in October.
Analysts forecast potential gold price rebounds
EverBank executives noted that gold is testing resistance near 4,400 USD. A breakout above this level could open room for further gains. CPM Group issued a buy recommendation with a target of 4,590 USD. This target covers the period from September 17 to October 2. A stop-loss level is set at 4,270 USD for risk management. Senior analysts at FxPro predict a rebound in the second half of the week. These views suggest that current dips may present buying opportunities for investors.
