Countries rush to accumulate gold after Middle East tensions, precious metal prices about to 'heat up'?

However, expert Tran Duy Phuong commented: Tensions in the Middle East are a factor supporting gold prices to increase for a certain period of time, but will not last long.

“The political instability in the Middle East has not yet become a comprehensive phenomenon. In fact, in recent years, such instability has occurred and ended and repeated many times. Besides, the US and countries around the world are taking actions to ease this war, avoiding escalating conflicts. Therefore, I believe that tensions in this region will soon ease,” Mr. Phuong stated his opinion.

The unstable political situation in the Middle East has caused the demand for gold to increase sharply. (Illustration photo)

Mr. Phuong cited that in fact, on June 23, the world gold price did not show a clear upward trend but sometimes even decreased. That proves that the instability in the Middle East has not really had a big impact on the world economy in general or the gold market in particular.

“In fact, geopolitical tensions are not necessarily the factor that strongly affects gold prices. It is economic risks that cause gold prices to fluctuate strongly. Recently, President Donald Trump introduced policies to impose tariffs on a series of countries around the world , raising many potential economic risks. This makes gold a safe haven, with high demand, so prices increase sharply.” Mr. Phuong analyzed.

Furthermore, June and July are the low season for gold, so demand is often not high, and central banks do not buy gold in the third quarter of the year.

Giving a forecast that gold prices in the coming time will not increase sharply but even tend to decrease, expert Tran Duy Phuong explained: “Recently, countries on the US tariff list have also conducted negotiations and achieved many initial positive results. Therefore, concerns about economic risks are gradually disappearing. I think that in the coming time, the world gold price may return to 3,200 USD/ounce in the third quarter and by the fourth quarter, the gold price will return to 3,500 USD/ounce,” Mr. Phuong said.

From there, expert Tran Duy Phuong believes that domestic gold prices will also move in the same direction as world gold prices, which is not to increase sharply in the next few months.

“In the country, we have SJC gold which is always in short supply, currently about 13 million VND/tael higher than the world price. Meanwhile, the price of 9999 raw gold at private gold trading establishments is about 2-3 million VND/tael higher than the world price. The price of other major gold brands such as Doji, PNJ, Bao Tin Minh Chau... is about 10 million VND/tael higher than the world price. The State Bank and relevant agencies will have policies and solutions to eliminate inappropriate differences.

However, currently, if the world gold price increases or decreases, the domestic price will also fluctuate accordingly.

In addition, in the near future, there may be new regulations from the State Bank to increase the domestic gold supply, such as allowing businesses to import gold. I think that will happen soon, at which time, the domestic gold price will decrease sharply," Mr. Phuong predicted.

From the above comments, Mr. Phuong recommends that those who want to buy gold for investment at this time will face a high risk rate.

“In the coming time, the price of gold will continue to decrease, so investors should wait until the price is more reasonable, then they will have a higher rate of return. In fact, the price of gold always increases over time, but if we buy at a time when the price of gold is high, the rate of return will be low. And conversely, if we perceive and make accurate forecasts, buying gold at a time when the price is low, the rate of return will increase higher,” noted expert Tran Duy Phuong.

Source: https://baolangson.vn/cac-nuoc-o-at-tich-vang-sau-cang-thang-trung-dong-gia-kim-loai-quy-sap-nong-5051015.html