New York gold prices edged down slightly on the 17th

　　Source: Xinhua Finance

　　Xinhua Finance, New York, September 17 (Reporter Xu Jing) — On September 17, the most actively traded December 2026 gold futures contract on the New York Mercantile Exchange fell by $6.9 to close at $4380.6 per ounce, a decline of 0.16%.

　　A slight retreat in US Treasury yields triggered profit-taking in the US dollar, providing support for gold prices. As a result, gold rebounded further from the nearly six-week low it hit in the previous session. However, the Federal Reserve's hawkish stance and escalating tensions in the Middle East limited further declines in the US dollar, capping the extent of gold's rebound.

　　The Federal Reserve voted unanimously on September 16 at the conclusion of its September monetary policy meeting to raise interest rates, a decision that was in line with broad market consensus. The dot plot indicates that Fed officials expect to raise interest rates one more time this year. At the subsequent press conference, Federal Reserve Chairman Kevin Walsh stated that the decision was made due to a strengthening US economy, a lack of improvement in summer inflation trends, and geopolitical factors.

　　Walsh stated that inflation remains high and persistent, and stabilizing consumer prices is essential to promoting US economic growth. In addition, the inflation risks brought by persistently high energy prices also suggest the Fed may further tighten monetary policy, supporting US Treasury yields at elevated levels. The benchmark 10-year US Treasury yield remains close to the psychological threshold of 5.0%, marking its highest level since April 2007.

　　Although shipping in the Strait of Hormuz remains restricted and pipeline disruptions in Saudi Arabia have yet to be fully resolved, oil prices fell that day as the market expects infrastructure in the Gulf region may recover at an accelerated pace.

　　Analysts believe the Federal Reserve's stance may be even more hawkish than recent statements suggest, and after raising rates on the 16th, it is possible another rate hike could occur before the end of the year.

　　Some economists believe that raising rates is the path of least resistance. Keeping rates unchanged would further damage the Fed's credibility, while a 50 basis point hike might be an over-correction and constrain the Fed's actions in the coming months. This move would have minimal effect on actually curbing inflation, but would buy the Fed time to determine whether the stronger-than-expected economic data in August are a temporary fluctuation or a more concerning trend.

　　On the same day, December silver futures prices rose by 79.6 cents to close at $65.715 per ounce, an increase of 1.23%.

Editor: Zhu Henan