World gold price closed the trading week at 2,720 USD/ounce. Gold futures price for December 2024 traded at 2,736 USD/ounce.

The world gold price has been continuously increasing, setting many new records. After many years of being ignored, investors and banks are paying more attention to gold, a safe haven asset against the increasing geopolitical and economic instability of the world.

Investors - including central banks - are turning to gold as a form of protection against persistent inflation and rising government debt, according to Bank of America.

With U.S. debt expected to continue to rise, strategists warn that the supply of Treasury bonds is at risk. Higher interest payments as a share of GDP make gold a sought-after asset in the coming years.

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Gold prices are expected to continue to increase. Photo: Chi Hieu

A recent report from the International Monetary Fund (IMF) predicts that new spending could reach 7-8% of global GDP annually by 2030.

The race for the White House in the US affects the gold market. The two presidential candidates, Donald Trump and Kamala Harris, have difficulty solving the rising debt level.

Analysts predict the national debt will hit a record high within the next three years. Harris’s plan is estimated to add $3.5 trillion to the debt by 2035, while Trump’s would add $7.5 trillion. That makes gold an attractive asset.

Gold demand has been rising since the Federal Reserve began its rate-cutting easing cycle last month, the most important driver of gold prices, with the recent rate cuts drawing investors back into the gold market in the West.

Central banks are the most active buyers of gold. According to the US central bank, the yellow metal now accounts for 10% of central bank reserves, up from 3% a decade ago.

At the end of last week's session, the price of 9999 gold bars at SJC and Doji remained at VND84 million/tael (buy) and VND86 million/tael (sell).

Meanwhile, the price of gold rings continues to increase sharply following the world price. SJC listed the price of gold rings of type 1-5 at only 84-85.3 million VND/tael (buy - sell). Meanwhile, at Doji, the price of buying - selling gold rings of type 1-5 is only 84.7-85.7 million VND/tael.

Gold Price Forecast

The latest Kitco News weekly gold survey shows that a majority of experts are bullish on gold.

The current rally appears to be relentless, said Colin Cieszynski, chief market strategist at SIA Wealth Management. Gold prices have hit new highs despite few notable events that have had a positive impact on the metal. Most importantly, the rally has been driven by all currencies, not just the U.S. dollar. It has also been driven by the European Central Bank (ECB) cutting interest rates.

Marc Chandler, managing director at Bannockburn Global Forex, said that gold prices still have fundamental momentum. Gold hit a new high before the end of last week. The rally was accompanied by a stronger dollar and higher US interest rates. Tensions in the Middle East continue to weigh on the precious metal.