Gold prices benefit from expectations of Fed rate cut

Gold prices edged up on the afternoon of August 13 thanks to expectations and a weaker US dollar, after US inflation data reinforced expectations of an interest rate cut in September.

Gold jewelry on display at a shop in Yangon, Myanmar.

At 2:05 p.m. (Vietnam time), spot gold increased 0.3% to $3,355.30/ounce. US gold futures for December 2025 delivery also increased 0.2% to $3,405.50.

The dollar index, a gauge of the greenback’s strength against a basket of major currencies, continued to weaken after U.S. inflation data failed to pick up significantly in July, making dollar-denominated assets such as gold more affordable for holders of other currencies.

Markets are now pricing in a 90% chance the US Federal Reserve will cut interest rates in September and at least one more cut by the end of the year.

Gold prices are always sensitive to US interest rate adjustments. Lower interest rates will weaken the USD, but significantly increase the attractiveness of non-yielding assets such as gold.

Investors are also keeping an eye on US-Russia talks this week on the conflict in Ukraine.

Tim Waterer, chief market analyst at financial services firm KCM Trade, said the weakening of the US dollar had created conditions for a slight recovery in gold prices, with the precious metal hovering around $3,350 an ounce ahead of the meeting between the leaders of Russia and the US on August 15.

The analyst added that if the meeting fails to resolve the issue and the conflict in Ukraine continues, gold could once again head towards $3,400 an ounce. Gold is often seen as a safe haven investment amid political and financial uncertainty.

Investors are now looking ahead to more US economic data later this week, including the Producer Price Index (PPI), weekly jobless claims and retail sales for further guidance on Fed policy.

In other precious metals markets, spot silver rose 1.2% to $38.35 an ounce. Platinum rose 1% to $1,348.70 an ounce.

In Vietnam, at 2:50 p.m. on August 13, the price of SJC gold in Hanoi market was listed by Saigon Jewelry Company at 123.0-124.20 million VND/tael (buy-sell).

baotintuc.vn

Source: https://baolaocai.vn/gia-vang-huong-loi-tu-ky-vong-fed-ha-lai-suat-post879473.html