US keeps interest rates at 4%, may raise them further: Gold and financial markets face risks. - Vietnam.vn

The US Federal Reserve has held its benchmark interest rate at 4% and signalled that further increases remain possible. The decision keeps borrowing costs elevated, which matters well beyond American shores: US rates anchor global financing conditions, shaping exchange rates, capital flows and asset prices in emerging markets such as Vietnam.

For gold, the calculus is mixed. Higher rates raise the opportunity cost of holding a non-yielding asset, a headwind for prices. Yet gold's appeal often strengthens when uncertainty is high, so the metal can react to shifting expectations about the rate path rather than to the current level alone. Financial markets more broadly face a similar tension: a "higher for longer" stance can pressure equity valuations and tighten liquidity, while a pause offers some relief.

What to watch: the Fed's communication on future moves, upcoming inflation and employment data, and the US dollar's direction. For Vietnamese investors, the ripple effects through the exchange rate and imported inflation are also worth monitoring.