Why do experts predict a sharp increase in gold prices in the fourth quarter of 2024?

SJC gold price skyrocketed

At 12:00 on February 29, 2024, the domestic SJC gold price continued to increase sharply compared to the early morning of the same day. Specifically, Saigon Gemstone Gold Company Limited - SJC listed the buying price of SJC gold at 77.7 million VND/tael and the selling price at 79.7 million VND/tael. The difference between the buying and selling prices at this unit is currently at 2 million VND.

Compared to the early morning of the same day, the price of SJC gold here was adjusted to increase by 400,000 VND for buying and 380,000 VND for selling.

Gold price listed at Saigon Jewelry Company Limited - SJC. Screenshot at 12:00 on February 29, 2024

Similarly, at 12 noon, Bao Tin Minh Chau listed the SJC gold price at 77.75 million VND/tael for buying and 79.65 million VND/tael for selling. Compared to the early morning of the same day, the SJC gold price at this unit was adjusted up 400,000 VND for buying and up 450,000 VND for selling.

Gold price listed at Bao Tin Minh Chau. Screenshot at 12:00 on February 29, 2024

The sharp increase in domestic gold prices compared to the early morning of the same day was due to the impact of world gold prices. At 8:40 a.m. today (February 29, Vietnam time) , the world spot gold price stood at around 2,035.3 USD/ounce, up 7.3 USD/ounce compared to last night. The price of gold futures for April 2024 on the Comex New York floor was at 2,043.2 USD/ounce.

The world gold price today increased sharply in the context of the US announcing data related to inflation. Accordingly, the personal consumption expenditure index in January 2024 increased by 2.6% compared to the same period last year and slightly higher than the previous month's data. This makes the market speculate about inflation in the US even hotter, causing the US Federal Reserve (FED) to maintain high interest rates for a long time.

Gold prices will increase to a record in the fourth quarter of 2024?

In the context of strong increases in domestic and world gold prices, many economic experts predict that gold prices will increase to a record level in the first quarter of 2023.

In recent years, central banks in many countries, including China, have stepped up gold purchases amid global economic difficulties and geopolitical instability that threaten global growth. Gold has also been supported by a brighter medium- and long-term outlook as the Fed reverses course on interest rate cuts.

Gold prices are expected to hit record highs in the fourth quarter of this year if the Fed cuts interest rates, said Phillip Streible, an analyst at Blue Line Futures.

Speaking to Kitco News, Saxo Bank commodity strategist Ole Hansen predicted that gold prices will continue to rise and could reach $2,300 an ounce. However, the expert noted that the precious metal will remain stuck in its current range until the market knows for sure when the Fed will cut interest rates.

Many experts predict that gold prices will increase sharply in the first quarter of 2024. Photo: Vietnamnet

Meanwhile, analyzing the domestic gold market, gold expert Tran Duy Phuong said that the forecast of gold price increase this year by international financial organizations is not small, not only Goldman Sachs but previously, some organizations also said that gold price will reach 2,500 USD or 3,000 USD/ounce in the future. In the next 6 months, gold price will increase and increase the most from the end of the third quarter, the beginning of the fourth quarter of 2024, because almost every year the precious metal goes up at the end of the year.

When the world gold price increases, the domestic gold price will increase accordingly. However, according to economic experts, whether the price of SJC gold and gold rings increases sharply and how much the difference is compared to the world price depends on whether the State Bank's market management policy changes compared to the present or not.

Because currently, businesses, investors and people are very interested in amending Decree 24/2012/ND-CP dated April 3, 2012 of the Government on the management of gold trading activities.

In the context of the current high gold price, Bao Tin Minh Chau representative recommends that investors and people should consider before trading and regularly monitor gold prices on official channels to make the most correct decision.

Source: https://congthuong.vn/vi-sao-chuyen-gia-du-bao-gia-vang-tang-manh-trong-quy-42024-305990.html