What is the prospect of gold investment until Lunar New Year?

Gold prices at the end of yesterday afternoon in the domestic market increased slightly in both buying and selling directions, from 200-300 thousand VND/tael.

At 3:30 p.m. yesterday, SJC and DOJI gold prices (in Hanoi and Ho Chi Minh City) were both listed at 83 million VND/tael for buying - an increase of 300 thousand, and 85.5 million VND/tael for selling - an increase of 300 thousand.

Meanwhile, the selling price of PNJ gold in Ho Chi Minh City increased by 800 thousand, at 83.5 million/tael; the selling price increased by 100 thousand, at 84.5 million/tael.

SJC gold price at Bao Tin Minh Chau and SJC at Phu Quy Gold and Silver Company were both traded at 83 million/tael for buying and 85.5 million/tael for selling, an increase of 200 thousand in both directions compared to the previous trading session.

Customers buy gold at Mi Hong 1 (1).jpg — Experts predict that the price of gold in the coming time will depend a lot on the geopolitical situation in the world. Photo: Quoc Hai

The price of gold yesterday made investors worried. According to analysts, the new situation that makes it difficult for gold prices to accelerate is that geopolitical tensions in the Middle East have cooled down when Israel and Hezbollah officially ceasefire.

In addition, another factor that is also expected to affect gold prices is the US imposing tariffs on imported goods, which will increase inflation. As a result, the US Federal Reserve (Fed) may be slow to cut interest rates, which will put pressure on gold prices.

Currently, the market continues to look to the Fed's interest rate decision in December. Any move by the Fed will greatly affect whether gold prices increase or decrease.

Regarding domestic gold investment from now until Lunar New Year, Associate Professor Dr. Nguyen Huu Huan - Ho Chi Minh City University of Economics - said that this period is quite risky. Whether people should invest in gold or not depends on each person's strategy.

According to Mr. Huan, gold prices have increased nearly 3 times, from the "bottom" of more than 30 million to nearly 90 million VND, so the pressure to take profits is very large not only in Vietnam but also in the world.

“Gold depends a lot on geopolitical fluctuations. This was evident when Israel and Hezbollah agreed to a ceasefire, and the price of gold dropped by more than $100 in the session on November 25. Especially in the current period, it is very difficult to predict the fluctuations of the global geopolitical situation, because it depends a lot on the will of the leaders,” Mr. Huan pointed out.

One issue that this expert also noted is the possibility that in the near future, countries will diversify their markets, even diversify their currencies, and not depend on the USD as before.

“Recently, the group of emerging economies (BRICS) has begun to build a new monetary system as well as a new common currency. This is called the 'de-dollarization' effort of emerging powers, and this will affect the price of gold in the long term. Because these countries will increase their gold reserves to build a new monetary system, with gold or bitcoin as the center..., which will more or less affect the price in the long term,” Mr. Huan analyzed.

According to experts, if this trend continues, regardless of geopolitical fluctuations, gold prices will still increase because the reserve demand of the above countries will continue to increase.

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