Gold price today December 18: Sharp increase, setting new peak
Gold prices today, December 18, on the world market reached a one-week peak after the Fed committed to maintaining low interest rates and investors received positive signals from negotiations on a new economic stimulus package in the US.
Night of December 17 (Vietnam time),gold priceThe world spot price stood around $1,889/ounce. Gold for February delivery on the Comex New York floor was at $1,894/ounce.
The world gold price on the night of December 17 was about 24.2% higher (368 USD/ounce) than at the beginning of 2020. World gold converted to the bank USD price was 53.5 million VND/tael, excluding taxes and fees, about 2 million VND/tael lower than the domestic gold price as of the end of the afternoon of December 17.
Gold prices in the international market hit a new one-week peak after the US Federal Reserve (Fed) pledged to maintain low interest rates and investors welcomed positive signals from stimulus package negotiations in the US.
Gold prices increased sharply and gradually approached the threshold of 1,900 USD/ounce in the context of the US dollar falling to its lowest level in the past 2 and a half years.
After a two-day meeting, the US Federal Reserve issued a statement pledging to support the US economic recovery, while US policymakers made progress on a new stimulus package.
The Fed pledged to continue supporting the US economy with its massive stimulus package until it sees “substantial progress” in the job market and inflation, and decided to keep interest rates at a record low of 0-0.25% until at least 2023.
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| Gold prices skyrocketed today. |
In addition, the Fed pledged to continue buying bonds until full employment is achieved. Specifically, the Fed will continue to increase its holdings of US government bonds by at least $80 billion per month and increase its holdings of mortgage-backed securities (MBS) by at least $40 billion per month.
Gold prices also increased because investors expected that if Joe Biden were to take office as US president, he would fulfill his commitment to inject more money into the US economy. A large amount of money would put downward pressure on the USD and create momentum for gold prices to increase.
Gold Price Forecast
With a strong breakout in the session of December 17, the world gold price has shown signs of returning to a long-term upward trend. In the next few years, the money injection by countries will lead to inflation and this is a strong supporting factor for precious metals.
In the domestic gold market, at the end of the session on December 17, most gold shops in Hanoi increased the price of 9999 gold by about 100-150 thousand VND in both buying and selling directions compared to the previous session.
At the end of the trading session on December 17, DOJI Gold and Gemstone Group listed the price of SJC gold in Hanoi at: 54.95 million VND/tael (buy) and 55.55 million VND/tael (sell).
