At the close of trading on 17/9, global spot gold prices rose 77 USD to 4,340 USD an ounce. By the morning session of 18/9, prices continued to climb, currently reaching 4,359 USD. In the preceding session, the precious metal had at one point fallen to a 6-week low, following the United States Federal Reserve (Fed)'s announcement of its first reference interest rate hike in 3 years.

The market surged due to falling crude oil prices and a weaker United States dollar. Investors are also further evaluating the Fed's interest rate hike.

"Gold prices are moving inversely to energy prices, driven by inflation pressure. As oil prices have fallen sharply, the pressure on the gold market has also eased," stated David Meger, Director of Precious Metals Trading at High Ridge Futures.

Global crude oil prices fell for 2 consecutive sessions to a one-week low, as supply concerns eased. The USD also declined from its 7-week peak, making the precious metal cheaper for buyers using other currencies.

United States 10-year government bond yields also decreased. This development is favorable for non-yielding assets like gold.

The CME FedWatch Tool indicates investors currently project a 51% probability of the Fed further cutting rates in its October meeting. This probability is higher than the 44% forecast a day earlier. While gold is considered an inflation hedge, a high interest rate environment reduces the precious metal's appeal.

"However, rising fiscal deficits, increasing debt, a weaker United States dollar, and expectations of the Fed cutting rates again next year will support gold prices, despite short-term volatility," UBS bank forecast.

Besides gold, prices for silver, platinum, and palladium also rose sharply during the 17/9 session. Increases ranged from 2-4%.

Ha Thu (according to Reuters)