How long will gold prices rise?

At the end of the trading session on September 25, the domestic price of SJC 9999 gold bars was listed by SJC and Doji Gold and Gemstone Group in Hanoi and Ho Chi Minh City at VND81.5-83.5 million/tael (buy - sell), unchanged from the previous session despite the sharp increase in world gold prices.

The price of domestic gold rings on September 25 continued to set a new historical peak, at times reaching 82 million VND/tael (buy) and 83 million VND/tael (sell).

Saigon Jewelry Company Limited (SJC) listed the price of gold rings of type 1-5 at only 80.8-82.3 million VND/tael (buy - sell). Doji listed the price of 9999 smooth round gold rings at 81.95-82.95 million VND/tael (buy - sell).

Thus, over the past week, the price of gold rings has increased by about 4 million VND/tael, equivalent to an increase of about 500,000 VND/day. At this rate, gold rings may soon reach the threshold of 85 million VND/tael.

As of 8:00 p.m. on September 25 (Vietnam time), the spot gold price today on the world market was at 2,665 USD/ounce. Gold for December 2024 delivery on the Comex New York floor was at 2,687 USD/ounce.

The world gold price on the night of September 25 was about 29.2% higher (602 USD/ounce) than at the beginning of 2024. The world gold price converted to the bank USD price was VND 80.3 million/tael, including taxes and fees, about VND 3.2 million/tael lower than the domestic gold price as of the end of the afternoon session on September 25.

World gold prices increased as countries sought measures to support economic growth and tensions in the Middle East escalated with no end in sight.

The USD continues to weaken. The DXY index - measuring the USD's volatility against a basket of six major currencies - fell to 100.3 points on the evening of September 25 (Vietnam time), compared to 100.6 points on September 17, 101.8 points on September 12, 103 points in mid-August and 106.25 points at the end of April.

The greenback's decline has pushed up the prices of commodities traded in the currency, including gold.

Not only the US and some European countries, the People's Bank of China (PBOC) has just announced a plan to loosen monetary policy. The pumping of money into the economy adds momentum to push gold up.

Gold Price Forecast

The Swedish central bank (Riksbank) decided on September 25 to cut its key interest rate by 0.25 percentage points to 3.25%/year. The Riksbank is expected to cut interest rates further this year.

Gold is also supported by technical analysis signals after continuously breaking new peaks, surpassing important resistance levels, including the threshold of 2,600 USD/ounce and 2,650 USD/ounce.

Tensions in the Middle East are expected to continue to rise and may last longer. This is a driving force that can help gold prices set new peaks as money flows into gold and silver.

Some forecast gold will reach $2,700-2,750/ounce by the end of 2024 and will reach $3,000/ounce in the first half of 2025.