On the first day after the September 2 holiday (September 3), the gold price continued to set a new peak: 131.9 million VND/tael (buy) and 133.4 million VND/tael (sell). This is a new record high, an increase of 49.2 million VND/tael compared to the beginning of the year, equivalent to an increase of more than 58%.

The price of plain gold rings also increased sharply, to 125.5 million VND/tael (buy) and 128.5 million VND/tael (sell).

Domestic gold prices increased following world prices. Opening the morning session on September 3, the spot gold price on the Asian market increased by more than 7 USD to 3,541 USD/ounce, after skyrocketing by 70 USD in the trading session on September 2 on the New York market (ending early morning on September 3, Vietnam time).

Gold prices have surged due to increased demand for safe havens. Central banks have continued to buy since the beginning of the year, pushing gold prices up by more than 30% in about eight months. In addition, global investors believe that the US Federal Reserve (Fed) will reverse its monetary policy and return to cutting interest rates from its meeting on September 17.

What is worrying is the independence of the US central bank after the administration of US President Donald Trump put increasing pressure on the Fed and the personnel on its committees.

Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.

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SJC gold price jumped to 133.4 million VND/tael. Ring gold price also increased to nearly 129 million VND/tael. Photo: HH

Another reason for gold's strong rise

Gold prices have also been pushed higher as US political and trade policies have become increasingly unpredictable. Last weekend, a US appeals court declared most US tariffs illegal, a ruling that calls into question President Donald Trump’s authority to impose import tariffs.

The tariffs remain in place while the case continues, but that adds to uncertainty and businesses will freeze investment decisions until the cost of the tariffs becomes clearer.

According to technical analysis, spot gold has broken through the $3,500/ounce level and is heading higher towards $3,600. Gold for December delivery has risen to $3,605/ounce. The next target is to close above the resistance of $3,700/ounce.

Gold also rose as the market entered the peak consumer season of the year. Buying power from gold ETFs also supported the precious metal. The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, increased its holdings by 1% in a few days to more than 977 tonnes, the highest level in the past three years.

JP Morgan experts predict that gold could reach $3,675/ounce by the end of 2025 and $4,250/ounce by the end of 2026.

On Kitco, Michele Schneider, chief market strategist at MarketGauge, said it was impossible to predict how high gold prices could go. Last week, she predicted that gold prices would soon surpass $3,500 an ounce.

Michele Schneider sees a target of $4,000 an ounce in sight as gold prices are just starting to break out. Technically, the longer the consolidation phase lasts, the stronger the breakout is likely to be. He sees $3,800 to $4,000 as “extremely possible.” That could be the next logical target before the market sees some profit-taking. Even at this level, investors are not missing out.

Not only is gold hitting a new record high, Schneider said she is also looking for a solid rally. Gold prices had their best weekly close on record last Friday.

Schneider explained that the new rally in gold comes as the Fed signals a change in monetary policy, shifting away from inflation that is raising concerns about the purchasing power of the US dollar.

Wellington Letter editor Bert Dohmen also noted the signs of money shifting from stocks to gold. He said the US stock market was in the most dangerous speculative state he had seen in his career, and predicted a severe recession that could be "the worst we've seen since 1929."

Record leverage levels have set the stage for a “disaster in the mortgage market” and many investors “will lose everything,” Bert Dohmen warned. The warning comes as gold and silver prices surge on safe-haven demand. The move into the precious metals coincides with new data showing the US industrial economy has contracted for six straight months.

Bert Dohmen's core concern is the record $1 trillion in margin debt on the NYSE, referring to the aftermath of the 1987 crash, when Wall Street firms began foreclosing on investors who couldn't meet margin calls.

Gold was also supported by a loss of confidence in official US economic data and the collapse of Bitcoin.

According to Bert Dohmen, in the first phase of a sharp decline in financial markets, gold and silver will also be sold off because they are used as “a source of cash to meet margin calls.” However, this is a precursor to the second phase, when central banks inevitably print more money and investors flock to safe havens like gold and silver.

Based on a 400-year cycle study he conducted in 1980, Dohmen predicts a sustained rise in gold prices that will peak in 2031. He believes the world is entering a period of “fierce war,” making hard assets the only real safe haven.

What's been quietly pushing gold prices to record highs? Gold prices have risen sharply over the past two years, but the upward trend is expected to continue due to the looming risk of stagflation in the United States.

Source: https://vietnamnet.vn/gia-vang-len-muc-cao-chua-tung-co-them-yeu-to-khien-the-gioi-noi-song-2438767.html