Opening the trading session on December 4, the world spot price of gold soared by more than 60 USD, approaching 2,140 USD an ounce. Currently, the price has retreated to 2,095 USD.
This is the second consecutive session that precious metal prices have set new historical peaks. On December 1, the price closed at 2,071 USD. During the session, gold at one point rose to 2,075 USD, surpassing the old record set in 2020.
World gold prices soared when opening the morning session on December 4.
Gold prices have increased for two consecutive months, as the conflict in the Middle East increased shelter demand. Forecasts of lower interest rates also support the market.
"We believe that the main factors supporting gold prices in 2024 will be the Fed's interest rate cuts, a weaker USD and high levels of geopolitical tensions," BMI - the market research division of Fitch Solutions - commented. determined. Gold is often popular during periods of socio-economic upheaval, due to its ability to store value.
Bart Melek - Director of Commodity Strategy at TD Securities forecasts that gold prices will average $2,100 in the second quarter of next year. He believes that strong buying power from central banks will strengthen the rise of gold.
The domestic gold bar price this morning also adjusted according to the world, but the increase was lower. Gold houses raised the price by several hundred thousand a tael compared to the weekend and was still lower than the recently established peak of 74.6 million VND.
The price of gold bars at DOJI Jewelry Group this morning increased by half a million VND, to 73 - 74.5 million. Saigon Jewelry Company (SJC) increased the purchase price by about 200,000 VND, to 73 - 74.2 million VND.
As for plain round gold rings, this item continues to climb to new peaks. SJC's smooth round rings increased to 61.65 - 62.8 million. At other gold houses such as DOJI and Bao Tin Minh Chau, the selling price even exceeded 63 million VND per tael.
Converted according to Vietcombank's selling exchange rate (not including taxes and fees), the world gold price is equivalent to 61.45 million VND per tael, about 1.5 million VND lower than domestic gold rings and 13 million VND lower than gold bars.
The global gold fever shows no signs of cooling down anytime soon. The price is forecast to set many new peaks next year and will remain above the 2,000 USD mark. Due to geopolitical instability, the USD is likely to weaken and global interest rates may decrease.
The latest survey by the World Gold Council (WGC) shows that 24% of global central banks plan to increase gold reserves in the next 12 months. The reason is that they are increasingly skeptical about the role of the US dollar as a reserve asset.
The Fed's shift in monetary policy in 2024 could also impact gold prices, Melek said. Low interest rates will pull down USD prices, thereby making gold more attractive to buyers outside the US.
On November 29, Fed Board of Governors member Christopher Waller predicted that the Fed could loosen policy if inflation continues to cool in the next 3-5 months. "The $2,100 mark is increasingly feasible in the next quarter, if not even sooner," Nicky Shiels - Director of Precious Metals Strategy at MKS PAMP predicted on December 3.
Ha Thu - Quynh Trang (according to CNBC, Kitco)
