Gold prices are experiencing a historic surge globally, driven by various economic and geopolitical factors. In Vietnam, the price of gold rings has jumped to a record high, reflecting the broader trend in the gold market.
Record Price in Vietnam: The price of gold rings in Vietnam surged by 0.71% to reach a new historic peak of VND 85.1 million (approximately US$3,368.30) on Friday morning. This increase marks a 2% rise for the week and an impressive 35% increase year-to-date.
Steady Gold Bar Prices: The price for gold bars remained steady at VND 86 million per tael, where a tael is equivalent to 37.5 grams or 1.2 ounces.
Gold Prices Breach $2,700: On the international front, gold prices broke the $2,700-per-ounce barrier for the first time, reaching $2,706.76 per ounce as of Friday morning. U.S. gold futures also increased, reaching $2,722.00.
Drivers of the Surge: The rally in gold prices is attributed to several factors, including:
U.S. Election Jitters: Uncertainty surrounding the upcoming U.S. elections has increased demand for gold as a safe-haven asset.
Middle East Tensions: Ongoing geopolitical conflicts, particularly in the Middle East, have heightened concerns, further driving safe-haven demand.
Looser Monetary Policy: A supportive monetary environment, characterized by anticipated rate cuts from central banks, has also fueled the rally.
Market Sentiment: According to Tai Wong, a New York-based independent metals trader, “Gold has scoffed at a surging dollar and rallies at every chance it gets. It’s just a bull market that shows no signs of exhaustion.”
Analysts predict that gold will trade within the range of $2,500-$2,800 in the coming months, supported by expectations of Federal Reserve rate cuts and sustained geopolitical tensions. As rates remain low, the appeal of non-yielding bullion increases, making gold an attractive investment during times of turmoil.
The remarkable rise in gold prices both in Vietnam and globally highlights the precious metal’s enduring status as a safe haven amid uncertainty. With prices reaching new heights, investors are likely to continue viewing gold as a crucial component of their portfolios in the face of economic and geopolitical challenges.
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