War in the Middle East and the Korean Peninsula increases tension, gold prices are expected to increase further

This morning (October 17), the price of plain round gold rings exceeded 84 million VND/tael, the highest level in history.

Bao Tin Minh Chau Company listed the price of gold rings at 83.33 - 84.33 million VND/tael. This price increased by 300,000 VND/tael for both buying and selling compared to the end of the trading session on October 16.

Saigon Jewelry Company listed the price of plain round gold rings at 82.6 - 83.9 million VND/tael. Doji Group listed the price of gold rings at 83.35 - 84.35 million VND/tael, an increase of 250,000 VND/tael for both buying and selling compared to before.

In Ho Chi Minh City market, Mi Hong gold system listed the price of SJC gold bars at 85 - 86 million VND/tael, the price of smooth round gold rings at 83.5 - 84 million VND/tael.

The price of plain round gold rings has reached an all-time high. Along with the strong increase, the difference between the buying and selling price of round gold rings has been narrowed by businesses to 500,000 - 1,000,000 VND/tael (depending on the business). People still have difficulty buying round gold rings because many businesses have run out of gold to sell.

Gold prices on the international market increased sharply in the context of the heated situation in the Middle East and the Korean peninsula. The price of SJC gold bars increased, while gold rings continuously reached historical peaks.

International gold prices increased despite the USD also increasing. The world fell into a state of intense tension in many regions around the world in the context of the upcoming US presidential election in early November.

On the Korean Peninsula, the situation is also heated. South Korea and North Korea have had a tense week, starting with North Korea claiming to have detected South Korean drones carrying leaflets in Pyongyang.

In the Middle East, tensions continue to escalate and could spread after the US announced it would send troops and advanced anti-missile systems to Israel to protect its ally. Earlier, Israel's air defense system was hit by a supersonic missile from Iran and a military base was attacked by drones from Hezbollah.

Gold Price Forecast

Investors are watching for a possible Israeli retaliation against Iran, which could be severe.

While the war between Israel and the Hezbollah movement has not abated, Yemen is at risk of being drawn into the escalating military developments in the region.

With the above geopolitical tensions, money flows tend to seek safe assets, including gold.

Gold is expected to continue to rise and may set a new record high despite the USD also increasing in price due to the strength of the US economy, the Fed's delay in cutting interest rates as well as the strong money pumping speed of other countries.

However, the pressure to take profits on gold is also quite large every time gold climbs near the record peak of 2,685 USD/ounce recorded on September 26.

Many forecasts still believe that gold will surpass the threshold of 2,700 USD/ounce by the end of this year and may reach 3,000 USD/ounce by early 2025. However, recently many experts no longer overestimate the upward trend of gold prices.