Gold prices expected to rise amid new pressure of trillions of dollars from the US

The World Gold Council has predicted that gold prices would have continued to rise even without the financial crisis. This statement is contrary to the recent developments of gold in the market.

The World Gold Council (WGC) believes that gold prices will benefit from the soaring US budget deficit and increasing financial instability, even if no crisis occurs in the near future.

Recently, the gold market has been under great selling pressure and is stuck in the range of 3,300-3,350 USD/ounce, much lower than the peak of 3,500 USD/ounce recorded on April 22.

Gold prices fell mainly due to profit-taking after nearly two years of strong gains, along with the prospect of stability in the Middle East. Some organizations forecast that gold may temporarily fall below $3,000/ounce before rising again in 2026-2027.

Thus, the World Gold Council's forecast may not contradict short-term selling pressure.

Gold prices are forecast to continue to rise, according to the World Gold Council. Photo: Minh Hien

But the US faces trillions of dollars in new debt. With the passage of the One Big, Beautiful Bill (3B), the US is facing an additional $3.4 trillion in debt over the decade, to $36.2 trillion – and a $5 trillion debt ceiling increase. That’s not happening unless the US achieves the high economic growth the Trump administration is forecasting.

In addition, the United States and the world are facing many risks, including geopolitical tensions that remain high in many regions and escalating trade wars.

In addition, internal political turmoil, such as billionaire Elon Musk's announcement of a new party, also adds a layer of uncertainty to the US economy.

These uncertainties “triggered a reallocation of global capital,” as a weaker US dollar pushed gold prices and Treasury yields higher, WGC analysts said. As financial pressures mount, bond market volatility is likely to persist, supporting demand for gold as a safe-haven asset, they said.

Investors are watching to see how Bill 3B will impact asset allocation strategies, the WGC said.

Central banks have been buying gold heavily in recent years. Source: WGC

“With uncertainty everywhere, gold is likely to continue to be an attractive safe haven for investors navigating a volatile world where financial concerns are adding to investor risk,” WGC experts assessed.

Rising interest rates are often seen as a significant drag on gold prices. However, since 2022, this inverse correlation has been balanced by other factors. Real interest rates are above 2%.

Besides, there is strong gold buying activity by central banks of countries from 2022 to present.

A weaker US dollar also supports gold. The US Federal Reserve is forecast to cut interest rates twice in the second half of 2025, totaling about 0.5 percentage points.

One notable factor, according to the WGC, is the signal of not wanting to increase holdings of US debt. This puts pressure on US bonds. Money flows may find other assets, including gold.

US public debt increases sharply. Source: BLB, KC

All of these factors are putting the US in a precarious financial position. According to the WGC, “the gold market is likely to continue to be supported by US fiscal issues, as bond markets remain sensitive to concerns about the sustainability of government debt.”

“Indeed, over the past two decades, loose fiscal policies and structural changes in demand have made the US financial system more fragile. This position could worsen if the budget deficit increases under the scenarios under Proposition 3B,” the WGC warned.

The World Gold Council stressed that it does not see a full-blown financial crisis in the United States as an imminent threat. Instead, the more likely outcome is a series of successive mini-crises as political goals and bond market expectations collide.

As financial concerns continue to mount, the WGC expects gold, an alternative safe-haven asset, to remain well supported.

At 9:00 a.m. on July 10, the spot gold price on the international market increased by nearly 9 USD to 3,322 USD/ounce.

Domestic gold prices increased slightly. Specifically, at 9:45 a.m., the price of 9999 gold bars at SJC and Doji was listed at VND118.8-120.8 million/tael (buy - sell), an increase of VND200,000 in both buying and selling compared to the end of the previous session.

SJC announced the price of gold rings of type 1-5 at only 114.2-116.7 million VND/tael (buy - sell); Doji announced the price of plain gold rings at 115.2-117.2 million VND/tael (buy - sell), both increased by 200,000 VND/tael.

Gold price today July 10, 2025: Gold plummets, can the 'sharks' pull it up, what will happen to SJC? Gold price today July 10, 2025 on the international market has dropped, falling deeply below the threshold of 3,300 USD/ounce, but this is also the level where 'sharks' often buy at the bottom. What will happen to SJC gold price in the future?

Source: https://vietnamnet.vn/gold-price-expected-to-rise-high-before-the-pressure-of-new-years-of-usd-2420056.html