Despite the sell-off and the strengthening of the US dollar in the final sessions of last week, gold prices maintained a steady increase, approaching the price of 2,700 USD/ounce. Analysts said that this is a sign of recovery of the precious metal after nearly two months since Mr. Trump was elected President of the United States.

The US Department of Labor reported that non-farm payrolls rose in December as the US created 256,000 jobs, far exceeding the forecast of 160,000 jobs. The rise in gold prices contradicted the forecasts of retailers, the increase in non-farm payrolls will boost the possibility that the US Federal Reserve will not cut interest rates in January.

After a series of analyses and what the gold market reflected in the previous session, experts believe that in the next 10 days, gold prices will continue to improve and soon return to $2,700/ounce.

One of the notable market outlooks is that gold futures have shown significant strength. February gold prices have stabilized above $2,700 an ounce, and at one point reached $2,735 an ounce.

gold 27 7.jpg
Economic factors are supporting gold . Photo: HH

According to many analysts, gold will be very active in the next 10 days after being quiet during the New Year holidays. After the holidays, the number of investors returning to the market increased dramatically as they sought to hedge against the risks of rising inflation, economic instability and geopolitical instability. This proves that gold is of great interest compared to other investment channels.

Investors appear to be flocking to the precious metal due to concerns about tariffs and inflation after Trump takes office on the 20th of this month, said Kathy Lien, managing director at FX Strategy. While higher interest rates are typically bad news for gold, the uncertainty over tariffs continues to accelerate the search for safety, making gold the best choice.

At first glance, higher interest rates are negative for gold, but higher rates, when the Fed keeps rates unchanged, will push real interest rates lower, creating a positive environment for the precious metal, said Ole Hansen, head of commodity strategy at Saxo Bank.

The US central bank has signaled that it expects to cut interest rates only twice in 2025.

In the long term, analysts say, gold is caught in a constant tug-of-war between US interest rates and the safe-haven appeal of geopolitical and economic uncertainties.

According to economic experts, gold is strongly supported by central banks of countries that continue to buy heavily to diversify away from the USD, to protect themselves from geopolitical instability.

In the domestic market, gold prices increased sharply last week, Doji's plain rings approached the price of 87 million VND/tael. Meanwhile, SJC gold increased to its highest level in a month, reaching 86.8 million VND/tael.

It is forecasted that in the next 10 days, under the strong support of the world gold price which is on an upward trend, gold rings and SJC will continue to rise and may approach the 90 million VND/tael mark.

Gold price today January 12, 2025: SJC gold price jumped to 86.8 million, the highest increase in 1 month Gold price today January 12, 2025, safe haven demand for gold increased sharply in the context of high inflation and the upcoming tax policy of the Trump administration. Domestic gold price closed the week at the highest level in the past 1 month.