Gold price breaks old peak, sets new record

Specifically, at 11:00 a.m., Doji listed the price of gold rings at VND82.9 - 83.6 million/tael (buy - sell), an increase of VND100,000/tael. This is the highest price ever.

At the same time, the price of gold rings was listed by SJC at 81.9 - 83.2 million VND/tael.

While the price of gold rings continuously reached new peaks, the price of gold bars stagnated, currently trading at 82 - 84 million VND/tael.

The price of gold rings continues to increase, despite the world gold price today slightly decreasing by 5 USD/ounce compared to early this morning, down to 2,655 USD/ounce. The reason for this decrease is that traders are waiting for more economic signals from the US and developments in the conflict in the Middle East.

A rebound in the dollar after investors reduced expectations for another big rate cut from the US Federal Reserve (Fed) weighed on gold, but the precious metal’s decline was somewhat capped by increased safe-haven demand due to concerns about escalating tensions in the Middle East.

There is a balance between geopolitical tensions and shifting monetary policy expectations, along with a rising US dollar, said Peter A. Grant, vice president and senior metals strategist at Zaner Metals.

As tensions escalate in the Middle East, markets have lost expectations that the US central bank will aggressively cut interest rates again at its November policy meeting, Grant said.

US bank Goldman Sachs has just raised its gold price forecast by $200, from $2,700/ounce to $2,900/ounce by early 2025.

In the long term, the outlook for real interest rates will boost gold prices, said ANZ senior commodity strategist Daniel Hynes, adding that the 28% gain this year has also been partly driven by the easing policy of the US central bank.

Traders are now pricing in a 61% chance that the Federal Reserve will cut interest rates by 25 basis points at its November meeting.

The latest report showed the U.S. private sector added 143,000 jobs last month. Traders are now awaiting Friday's nonfarm payrolls data, while also keeping an eye on comments from Fed officials for any clues on the central bank's policy path.

De Casa said that if the jobs data is weak, it will increase the possibility of a 50 basis point cut in November, and that scenario would push gold prices to record levels.