Domestic gold price

At the end of last week's session (August 25), the price of 9999 gold bars at SJC was 79 million VND/tael (buy) and 81 million VND/tael (sell).

Doji listed at 79 million VND/tael (buy) and 81 million VND/tael (sell).

International gold price

Last week, the world spot gold price recorded a new historical peak when it surpassed the mark of 2,530 USD/ounce on Tuesday. The world gold price then decreased and traded in the range of about 2,500-2,520 USD/ounce.

gold.jpg
World gold prices are forecast to continue to increase. Photo: Nguyen Hue

Spot gold prices rose sharply at the end of the week following positive news from the speech of US Federal Reserve Chairman Jerome Powell. Spot gold prices closed the week at $2,512/ounce. Gold futures for December 2024 traded at $2,548/ounce.

Kevin Grady, president of Phoenix Futures and Options, said the gold market is focused on a Fed rate cut. Gold prices have risen more than 20% since the beginning of the year, as investors expect the Fed to cut rates soon.

“Gold prices have been rising despite high interest rates. The data shows that gold prices have been stable for a long time even before the Fed did not cut interest rates,” he said.

He said that interest rates are on a downward trend. When interest rates fall, gold tends to rise. Investors see this as a tool to hedge against inflation.

The gold market has also increased strongly thanks to central banks actively buying to reduce dependence on the USD. This has positively supported gold prices to reach new peaks.

According to data from SPDR Gold Shares, the world's largest gold-backed exchange-traded fund, the ETF bought 12.38 tonnes of gold in August.

Gold Price Forecast

Experts predict that the uncertain state of the global economy and the Fed's start to cut interest rates will push gold prices to new record highs this year.

The latest Kitco News weekly gold survey shows that a majority of professionals and retail investors believe gold will continue to rise beyond its new record high.

Mr. Alex Ebkarian, CEO of Allegiance Gold Company (USA), said that expectations of interest rate cuts will push gold prices to $2,600/ounce.

Sharing the same view, Phillip Streible, Chief Market Strategist at Blue Line Futures, said gold prices could rise to a new level of $2,600/ounce before the market sees profit-taking selling pressure.

The market is currently reacting too positively to the expectation of interest rate cuts. Investors expect the Fed to cut interest rates this September and again by the end of the year. Investors are placing their faith in the prospects of gold from now until the end of the year.