Fluctuating with global gold prices.

Earlier this week, gold prices briefly reversed course and fell slightly, reportedly due to a strong USD and US economic data suggesting the Federal Reserve (Fed) is unlikely to cut its benchmark interest rate in November.

The skyrocketing price of gold has shaken the market and caused anxiety among investors.

Nevertheless, the price of gold as of yesterday (October 8th) was still close to its peak of $2,650 per ounce. At this level, the price of gold has increased by 45.93% in the past year, and if we only consider the last month, the price of gold has increased by about 6.8%. Throughout the past year, the price of gold has continuously broken records and set new highs such as $2,550, $2,600, and $2,650, even at times nearly reaching $2,700 per ounce.

Gold bars (9999 purity) are minted at a factory in Russia (photo taken on May 23).

However, this may not be the peak for gold prices. Reuters quoted Peter A. Grant, Vice President and Senior Strategist at Zaner Metals, an investment services firm, as saying: "The strength of the US dollar is a short-term headwind at this time preventing gold from reaching a new all-time high. But I still see short-term potential for gold to reach $2,700 and a long-term target of $3,000 per ounce due to safe-haven demand from geopolitical tensions and political instability, especially with the US election approaching."

Similarly, Newsweek recently quoted an investment expert as predicting: "In March, the price of gold reached $2,070 per ounce, and over the past six months, despite periods of decline, the price of gold has continued its upward trend. Seeing the price reach $2,600 per ounce, I thought it would reach $2,800 per ounce by the end of the year. But with what's happening now, the price of gold could even reach $3,000 per ounce this year."

Is the upward trend unstoppable?

Regarding the outlook for gold prices, Market Watch yesterday quoted analysts as saying that the upward trend will not last forever. According to them, the current high price of gold is based on expectations of a recovery in the Chinese economy and that the Fed will soon cut interest rates. Now, both of these factors are unlikely to happen, so the upward trend in gold prices may be halted.

However, many analyses also indicate that the "driving forces" behind the rise in gold prices continue. Specifically, geopolitical instability remains high, such as conflicts in the Middle East and Ukraine. The conflict in the Middle East is showing signs of escalating, with no positive signs of a ceasefire agreement. In the short term, the US election is nearing its end, and the outcome is difficult to predict, which could further drive gold prices higher.

In the long term, the decoupling of the global economy, notably the US-China trade conflict and Europe's increasing barriers to Chinese goods, is also driving up gold prices. Also part of this economic decoupling, the BRICS bloc (a group of emerging economies) is adding more members and accelerating its trend of reducing dependence on the USD in payments, making gold a preferred safe haven during the transition period of "de-dollarization".

The factors mentioned above are all catalysts that could cause gold prices to continue rising. However, both investment resources and the rate of price increase have limits, and it is very difficult to accurately predict the peak of gold prices. Therefore, many people who continue to believe in the upward trend of gold prices and pour money into buying may find themselves unable to exit in time, leading to significant losses, especially in the context of gold prices already being so high.

China has not yet implemented any further economic stimulus measures.

The South China Morning Post reported yesterday (October 8) that Zheng Cejie, Chairman of the National Development and Reform Commission (NDRC) of China, along with several deputies, held a press conference on the country's economic situation. Although the press conference organizers offered optimistic remarks about the Chinese economy, they did not announce any further economic stimulus measures. This disappointed observers and investors amidst the ongoing difficulties facing the Chinese economy.

On the same day, Prime Minister Li Qiang, along with Pan Gong Sheng, head of the People's Bank of China (which acts as the central bank), and Wu Qing, chairman of the China Securities Regulatory Commission, held two consecutive conferences on macroeconomic issues. Although information about the conferences has not been officially released, observers expect that China discussed further measures to stimulate the economy soon.

Source: https://thanhnien.vn/phap-phong-cung-gia-vang-the-gioi-185241008222447824.htm