The gold price increase cannot end, the upward trend is certain, China's influence has just begun?

Gold price today October 25, 2024: Domestic gold price maintained a record level, gold ring price approached the threshold of 89 million VND/tael, the highest in history, up more than 25 million VND/tael compared to the beginning of the year. World gold price temporarily turned down sharply, but the upward trend remained intact, the next resistance level is likely to be 2,850 USD/ounce.

Update gold price today October 25, 2024

World gold prices temporarily turned down sharply, but the upward trend remains intact.

Although the gold price on the international market had a strong adjustment session, it still remained above 2,700 USD/ounce, along with long-term supporting factors, such as geopolitical instability and interest rate cutting policies of a series of Central Banks.

According to the World & Vietnam Newspaper , the international gold price traded on the Kitco electronic floor, at 9:05 p.m. on October 24 (Hanoi time), is increasing again, trading at 2,731.60 - 2,732.60 USD/ounce , up 16.8 USD/ounce compared to the previous trading session.

The gold market has seen strong selling pressure after hitting a new record high earlier in the week. However, despite the sharp declines, gold still has a long way to go before its uptrend is threatened - persistent geopolitical uncertainty, even heating up by the day, is a factor that is actively supporting the precious metal.

The $2,590/ounce level is acting as a key medium-term support for the yellow metal, said Kelvin Wong, senior market analyst at OANDA. However, gold is unlikely to see a major correction anytime soon as the market has already garnered significant upside momentum.

Based on technical analysis, gold prices have been trading firmly above the 20-day and 50-day moving averages, with momentum indicators also trending higher. “These observations suggest that the medium-term bullish momentum in gold remains intact,” said analyst Kelvin Wong.

According to OANDA experts, the next resistance level will be around $2,850/ounce.

Along with gold's technical gains, Wong noted that gold continues to see solid fundamental support as a safe-haven asset. Gold's latest rally to an all-time high is often seen as part of the new "Trump trade" - gold is seen as the best hedge for investors if Republican Donald Trump wins the November presidential election. This is according to a Bloomberg survey, which found that the former president's policies are likely to weaken the US dollar and push the yellow metal higher.

At the same time, Wong noted that gold’s price action is responding to more than just uncertainty surrounding the U.S. election. Rising geopolitical uncertainty and fears of an economic slowdown as inflation remains high also make gold an attractive hedge against risk.

“Higher inflationary pressures and rising geopolitical risk premiums are a deadly mix that could lead to stagflation, which could trigger a potential risk-off in global financial markets. The recent surge in gold demand may therefore also be underpinned by portfolio hedging activities,” said OANDA analyst Kelvin Wong.

Thus, in the short term, gold may have some price adjustments, but in the medium and long term it is still forecasted to be in an upward trend, although it may not be as strong as in the recent period.

Domestic gold price maintains record level, gold ring price equal to SJC gold bar .

The price of SJC gold bars remained unchanged, maintaining the same price at 87.0 - 89.0 million VND/tael. Saigon Jewelry Company (SJC) and 4 banks in the Big4 group maintained the transaction price at 87 - 89 million VND/tael (buy - sell).

The price of 9999 round gold rings has now approached the 89 million VND/tael mark. The 89 million VND/tael mark is the highest price ever for domestic plain gold rings. This record price for domestic gold rings was first set on October 23, at times equal to SJC gold bars.

Today's gold ring price is the peak price of domestic gold rings. Compared to mid-October, each tael of plain gold rings has increased by more than 5 million VND. Compared to the beginning of the year, the domestic gold ring price has increased by more than 25 million VND/tael.

The price of gold rings at Saigon Jewelry Company (SJC) and PNJ is traded at 87.0 - 88.6 million VND/tael and 87.6 - 88.9 million VND/tael, respectively; DOJI Group listed 87.95 - 88.95 million VND/tael; Bao Tin Minh Chau listed 87.48 - 88.98 million VND/tael.

Converted to the USD exchange rate, the world gold price is currently equivalent to about 84.5 million VND/tael, including taxes and fees, about 4.5 million VND/tael lower than the domestic gold price.

Gold price today October 25, 2024: Gold price increase remains intact, upward trend is steady, China's influence has just begun? (Source: Kitco)

Summary of SJC gold bar prices at major domestic trading brands at the closing time of trading session on October 21:

Saigon Jewelry Company: SJC gold bars 87 - 89 million VND/tael; SJC gold rings 87.0 - 88.6 million VND/tael.

Doji Group: SJC gold bars 87 - 89 million VND/tael; 9999 round rings (Hung Thinh Vuong) 87.95 - 88.95 million VND/tael.

PNJ system: SJC gold bars 87 - 89 million VND/tael; PNJ 999.9 plain gold rings at 86.1 - 87.1 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at 87 - 89 million VND/tael; plain gold rings are traded at 87.48 - 88.98 million VND/tael.

China's influence on gold is just beginning

The China factor has played an unprecedented role in gold's rally to record highs this year and while the market may have cooled in the second half of the year, investors should not underestimate the impact the Asian giant has had on the precious metal.

China's influence on the gold market will only continue to grow as its economy grows, according to a panel discussion at the London Bullion Market Association's 2024 Precious Metals Conference.

“From a consumption perspective, the continued growth of Asia’s largest economy and its growing large consumer base will provide a solid foundation for China’s gold market,” said Dr. Zenghui, vice president of the Shanghai Gold Exchange (SGE).

Dr. Zenghui also noted that gold demand is shifting from basic consumption to an important investment asset in the Chinese economy. He explained that the SGE is in the process of streamlining its membership procedures, making it easier for international companies to tap into China's gold market.

“I believe there will be more trading strategies and a larger trading market. This is a very exciting opportunity and I warmly welcome global institutions to join our market,” said Dr. Zenghui.

Western investors have a hard time understanding how big the precious metals market is in China, said John Levin, head of Asia-Pacific metals trading and trading at TD Securities. He stressed that the country's size is why any move from there has a big impact on global markets.

Chinese players are becoming traders rather than net buyers. As gold prices rose to record highs in the second half of the year, many of the original buyers began selling gold.

Source: https://baoquocte.vn/gia-vang-hom-nay-25102024-da-tang-gia-vang-chua-the-dut-xu-huong-di-len-chac-chan-anh-huong-cua-trung-quoc-moi-chi-bat-dau-291218.html