After two weeks of strong growth, gold prices continue to receive positive forecasts

Last week, the price of SJC gold bars increased by 1.55 million VND/tael. Since the beginning of 2023, the price of SJC gold bars has increased by a total of 5.5 million VND/tael.

Meanwhile, the world gold price increased by 21.6 USD/ounce compared to the closing price of the previous trading session. In the past two weeks, the gold price has increased by 64 USD/ounce.

After two weeks of strong growth, experts predict gold prices next week will be quite positive. Analyst Rhona O'Connell of StoneX - one of the world's leading measurement and survey companies - predicts that geopolitical tensions, especially in the Middle East, along with the possibility of a banking crisis, are factors that will help promote and maintain the value of the precious metal at above $2,000/ounce from now until the end of this year.

UBS (Swiss multinational investment bank and financial services company) analyst Giovanni Staunovo said that gold prices will increase to $2,150/ounce by the end of 2024. In addition, the fall in gold prices is a good opportunity to buy because at some point the US Federal Reserve (FED) will cut interest rates.

Meanwhile, Daniel Ghali, commodity strategist at TD Securities, a Canadian investment bank and financial services provider, said that the Fed’s rate-cutting cycle starting earlier in 2024 is a key driver of higher gold prices. Lower oil prices could provide some short-term support for gold, according to Daniel Ghali. He explained that lower energy prices would give the Fed some breathing room to ease its current tightening bias.

Last week, investors could have made a profit of up to VND550,000/tael thanks to the strong increase in gold prices. Photo: Phan Anh

Notably, expert Ole Hansen - head of commodity strategy at Saxo Bank - said that the biggest risk for gold would be rising bond yields, causing the US dollar to strengthen.

“Gold looks well supported. Only a stronger US dollar could change that,” he told Kitco News.

Of the 13 Wall Street analysts participating in the Kitco News Gold Survey, seven, or 54%, see gold prices higher next week. Two, or 15%, see gold prices falling. Four, or 31%, are neutral on gold for next week.

Gold price forecast for next week. Source: Kitco

Meanwhile, 672 votes were cast in Kitco’s online poll. As usual, the majority of market participants remained bullish on gold. 431 investors, or 64 percent, expect gold to rise next week. Another 156, or 23 percent, predict lower prices. Meanwhile, 85 respondents, or 13 percent, are neutral on the precious metal’s near-term outlook.

Next week, prominent economic information that will affect gold prices include the US third quarter GDP released on Wednesday, the core personal consumption expenditure (PCE) price index, and US personal income and spending in October (on Thursday)...

It is worth noting that, in the context of many people having an overly optimistic view on gold, there are still warnings about the risk of a sudden decline in the price of precious metals. Frank McGhee - head of precious metals dealer at Alliance Financial said that gold is overbought and the market is mispricing some important factors.

"I really don't expect this rally to last. I wouldn't be surprised if one day gold suddenly drops $50, $60 an ounce. Gold is overbought," said Mr. McGhee.

Besides, he also believes that the metal market, along with the stock market, is misjudging the FED's easing scenario.

At the end of this week's trading session, the domestic gold price listed by DOJI Group for buying was 71.2 million VND/tael; the selling price was 72.3 million VND/tael. The difference between buying and selling gold prices at DOJI was 1.1 million VND/tael.

Meanwhile, Saigon Jewelry Company SJC listed the buying price of gold at 71.3 million VND/tael; the selling price is 72.3 million VND/tael. The difference between the buying and selling price of SJC gold is currently 1 million VND/tael.

Meanwhile, the world gold price closed the trading session of the week listed on Kitco at 2,002.7 USD/ounce, up 21.6 USD/ounce compared to the closing price of the previous trading session.

See more articles about gold prices on Lao Dong Newspaper here...

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