At the end of last week, the world gold price increased by 5%, reaching over 2,700 USD/ounce, ending a series of 3 consecutive weeks of decline. Many forecasts say that the gold price is on the rise, breaking the record of 2,790 USD/ounce set at the end of October.

Gold is being strongly supported by geopolitical instability, especially the risk of increased military conflict between Russia and Ukraine. Most experts find that geopolitical instability affects gold prices as much, if not more, than financial policies.

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World gold prices are forecast to approach record levels. Photo: Kitco

The dollar remains strong, but geopolitical uncertainty will help gold prices rise over the next 10 days, said Marc Chandler, CEO of Bannockburn Global Forex.

Russian President Vladimir Putin is unlikely to back down from threats to use nuclear weapons, which will add to geopolitical uncertainty and keep investors buying gold until at least the end of 2024, said Darin Newsom, senior market analyst at Barchart.

In addition, the precious metal market is very sensitive to monetary policies, since US Federal Reserve Chairman Jerome Powell announced that he would not increase the pace of policy easing after Mr. Trump was elected president.

The number of US unemployment claims has been lower than expected in recent weeks, pushing gold prices up, despite doubts that the Fed will not loosen monetary policy. Investors need to pay attention to economic data released every week, to know whether gold prices will increase or decrease to make a decision to buy or sell.

Mark Leibovit, publisher of VR Metals/Resource Letter, said that recent economic data strongly supports gold prices. Investors can rest assured that in the next 10 days, the gold market will not sell off and cause prices to suddenly plummet.

Daniel Pavilonis, senior commodities broker at RJO Futures, predicts that in the short term, when gold prices stand firmly above $2,700 an ounce, they will approach the record set at the end of October, even reaching a new record price of $2,800 an ounce.

According to Kevin Grady, President of Phoenix Futures and Options, the gold market falls during Thanksgiving week in the next 10 days. He believes that this is a very exciting time for gold.

The market will see long-term investors holding gold, waiting for prices to rise. They believe that geopolitical tensions will be a strong push to help gold skyrocket.

In the domestic market, gold prices increased sharply following the recovery of world gold prices. Plain round gold rings increased by nearly 6 million VND, approaching the price of 87 million VND/tael.

This week, domestic gold prices are likely to continue to be affected by world gold prices and will explode if world prices approach record levels.

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