On the very first day after the September 2nd holiday (September 3rd), gold prices continued to reach new highs: 131.9 million VND/ounce (buying price) and 133.4 million VND/ounce (selling price). This is a new record high, an increase of 49.2 million VND/ounce compared to the beginning of the year, equivalent to an increase of over 58%.
The price of plain gold rings also increased sharply, reaching 125.5 million VND/ounce (buying price) and 128.5 million VND/ounce (selling price).
Domestic gold prices rose in line with global prices. At the opening of trading on September 3rd, the spot gold price in the Asian market increased by more than $7 to $3,541 per ounce, after having surged by $70 in the September 2nd trading session in New York (ending early morning September 3rd, Vietnam time).
Gold prices have surged due to increased demand for safe-haven assets. Central banks have continued buying since the beginning of the year, driving 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, returning to cutting interest rates starting at its meeting on September 17th.
Of concern is the independence of the US central bank after the Trump administration exerted increasing pressure on the Fed and its committee members.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
Another reason for the sharp rise in gold prices.
Gold prices were further driven up by the increasing unpredictability of US political and trade policies. Last weekend, a US appeals court declared most US tariffs illegal. This ruling raises questions about President Donald Trump's authority to impose import tariffs.
Currently, the tariffs remain unchanged as the lawsuit continues. However, this increases uncertainty and businesses will freeze investment decisions until the cost of the tariffs becomes clearer.
According to technical analysis, the spot gold price has strongly broken through the $3,500/ounce mark and is heading towards the higher level of $3,600. The December gold futures price has reached $3,605/ounce. The next target is to close above the $3,700/ounce resistance level.
Gold prices are also rising due to the market entering its peak consumer season of the year. The buying power of gold ETFs is also supporting the precious metal. The world's largest gold exchange-traded fund, SPDR Gold Trust, increased its gold holdings by 1% in the past few days, to over 977 tons, the highest level in three years.
JP Morgan experts predict that gold could reach $3,675 per ounce by the end of 2025 and $4,250 per ounce by the end of 2026.
On Kitco, Michele Schneider, chief strategist at MarketGauge, said it's impossible to predict how high gold prices could rise. Last week, she predicted gold prices would soon surpass $3,500 per ounce.
Michele Schneider believes the $4,000/ounce target is within reach as gold prices begin to break out. Technically, the longer the consolidation phase lasts, the stronger the breakout is likely to be. The expert suggests that the $3,800 to $4,000 range is "extremely achievable." This could be a reasonable next target before the market sees some profit-taking. Even at this price level, investors haven't missed out on the opportunity.
Gold prices not only reached new record highs, but Schneider also said they are expecting a solid upward trend. Gold closed the week for the best week ever last Friday.
Schneider explained that the recent surge in gold prices came as the Fed signaled a shift in monetary policy, moving away from inflation which is fueling concerns about the purchasing power of the US dollar.
Bert Dohmen, editor of the Wellington Letter, also noted the apparent shift of money from the stock market to gold. He considered the US stock market to be in the most speculative state he had ever seen in his career, predicting a severe recession that could be "the worst we've seen since 1929."
Bert Dohmen warned that record levels of leverage have set the stage for "a margin call disaster and many investors will lose everything." The warning came as gold and silver prices surged due to safe-haven demand. This shift to precious metals coincided with new data showing the U.S. industrial economy has contracted for six consecutive months.
Bert Dohmen's core concern lies in the record-breaking $1 trillion in margin debt on the NYSE. He alluded to the aftermath of the 1987 crash, when Wall Street firms began foreclosing on the homes of investors who couldn't meet margin calls.
Gold was also supported by distrust in official US economic data and the collapse of Bitcoin.
According to Bert Dohmen, in the initial phase of a sharp financial market downturn, gold and silver will also be sold off because they are used as "a source of cash to meet margin calls." However, this sets the stage for the second phase, when central banks will inevitably print more money and investors will flock to safe havens like gold and silver.
Based on his 1980 research on 400-year cycles, Dohmen predicted a sustained rise in gold prices, peaking in 2031. He argued that the world was entering a period of "fierce warfare," making hard assets the only true safe haven.
Source: https://vietnamnet.vn/gia-vang-len-muc-cao-chua-tung-co-them-yeu-to-khien-the-gioi-noi-song-2438767.html
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