Gold prices rise again, will rise above $2,800 before Christmas, due to the growing threat of World War III?

Gold price today November 23, 2024: Domestic gold price has increased continuously for 5 consecutive sessions, plain round rings have returned to the threshold of 86 million VND/tael. World gold price is again heading towards the 2,700 USD/ounce mark and could be a record 2,800 USD/ounce right before Christmas, according to experts.

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Update gold price today 11/23/2024

World gold prices are rising despite the USD remaining at its highest level in six months.

The world gold price is again moving towards the $2,700/ounce mark, amid escalating geopolitical tensions between Russia and Ukraine. Geopolitical tensions have drawn investors to safe-haven assets, including gold. This is a strong catalyst for the precious metal to recover to the peaks set this year.

Recorded by World & Vietnam Newspaper , at 19:38 On November 21 (Hanoi time), the world gold price listed on the Kitco electronic floor was at 2,698.70 - 2,699.70 USD/ounce , an increase of 30 USD/ounce compared to the previous trading session.

Gold's record rally in 2024 has hit resistance around $2,791/oz, leading to a pullback to $2,540/oz and while some have warned of a prolonged consolidation period, precious metals analyst Matthew Jones at Solomon Global has said the yellow metal could hit a new record high above $2,800/oz before Christmas (December 25).

In the long term, analysts believe that the overall upward trend of gold prices will continue to increase steadily, despite temporary market fluctuations, said Julia Khandoshko, CEO of Mind Money. This correction in gold has created an opportunity for investors to enter the market. She added that "the recent sell-off is just a natural part of the broader cycle.

On the other hand, Goldman Sachs experts predict that escalating trade tensions when Donald Trump returns to the White House early next year could push up demand for gold. The precious metal could reach $3,000 an ounce by 2025. In addition, concerns about the sustainability of US fiscal policy also help the precious metal increase in price. Central banks - especially those that hold a lot of US government bonds - may choose to increase gold purchases.

Currently, investors and markets are paying attention to the news that the US Federal Reserve (FED) will cut interest rates by another 25 basis points at its final monetary policy meeting of the year, scheduled to take place on December 18. If the Fed does not loosen interest rates, gold prices may be restrained in the short term, according to ANZ Bank's forecast.

Domestic gold prices have increased continuously for 5 consecutive sessions.

Domestic gold prices have been continuously increasing amid the recovery of world gold prices. The price of SJC gold bars listed at Saigon Jewelry Company (SJC) is at 84.7-86.7 million VND/tael (buy - sell), up 1 million VND and 500,000 VND/tael respectively compared to yesterday's closing price. The difference between buying and selling prices has narrowed to 2 million VND.

Four state-owned banks - the Big4 group (Vietcombank, BIDV, Agribank, VietinBank) simultaneously raised the selling price of SJC gold bars to the market to 86.7 million VND/tael.

The price of plain round gold rings has increased by 500,000 - 600,000 VND to 86 million and is only 3 million VND/tael less than the old peak set at the end of October (record 89 million VND/tael).

Saigon Jewelry Company (SJC) listed plain gold rings at 84.6 - 86.1 million VND, an increase of 500,000 VND compared to yesterday; DOJI Group raised the price of plain rings to 85.1 - 86.1 million VND; Phu Nhuan Company (PNJ) also increased to 85 - 86 million VND.

Converted according to the USD exchange rate at Vietcombank, the world gold price is equivalent to 82.5 million VND per tael. The difference between domestic and world prices is about 3.5-4.2 million VND per tael.

Gold price today 11/23/2024: Gold price rises sharply again, increased threat of World War III, will gold rise above 2,800 before Christmas? (Source: Kitco News)

Summary of SJC gold bar prices and plain round gold ring prices at major domestic trading brands at the closing time of the trading session on November 22:

Saigon Jewelry Company SJC: SJC gold bars 84.7 - 86.7 million VND/tael; SJC gold rings 84.6 - 86.1 million VND/tael.

Doji Group: SJC gold bars 83.7 - 86.2 million VND/tael; 9999 round rings (Hung Thinh Vuong) 85.1 - 86.1 million VND/tael.

PNJ system: SJC gold bars 85.00 - 87.00 million VND/tael; PNJ 999.9 plain gold rings at 85.20 - 86.20 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at 85.30 - 87.00 million VND/tael; plain gold rings are traded at 85.48 - 86.43 million VND/tael.

Gold price will rise above 2,800 before Christmas?

"War. What good does it do? Nothing but push gold to record highs," said Matthew Jones, precious metals analyst at Solomon Global. "So in the current environment, $2,800 an ounce by Christmas is not out of the question."

The ongoing conflict between Russia and Ukraine has become one of the most intense and geopolitically significant confrontations of the 21st century. Western nations, led by the United States and its NATO allies, have provided significant military aid to Ukraine. Reports suggest the West is tacitly approving the use of long-range missiles such as ATACMS or Storm Shadow to target strategic locations inside Russia.

“While this strengthens Ukraine’s ability to disrupt Russian logistics and military operations, it increases the risks for the broader conflict and could mark a dangerous escalation of the military conflict,” Jones warned.

The Solomon Global analyst stressed that Russia “has repeatedly warned that attacks on its territory could provoke serious responses, including targeting Western supply lines or infrastructure in NATO countries,” saying that such retaliation “could trigger a direct confrontation between NATO and Russia, escalating the conflict beyond Ukraine’s borders.”

A world war involving Russia, the US and NATO could push gold prices to record highs due to a number of interconnected economic and geopolitical factors. Jones elaborated on this prediction by noting that, “Gold is considered a ‘safe haven’ asset during times of geopolitical uncertainty, war or economic turmoil.”

“Investors typically flock to gold to protect their wealth, leading to increased demand and higher prices. A global conflict could destabilize financial markets, triggering a sell-off in equities and riskier assets. As investors seek stability, gold could see significant inflows, further boosting prices,” said analyst Matthew Jones.

He also noted that during times of heightened conflict, supply chain disruptions, energy crises and widespread economic sanctions are common, all of which could bode well for gold prices. “These disruptions can fuel inflation and economic uncertainty, both of which have historically been positive for gold prices,” he said.

“Governments at war often resort to significant military spending, which leads to increased national debt and money printing. This can weaken currencies like the US dollar or euro, making gold more attractive as a store of value. Central banks will also tend to increase their gold reserves to diversify their holdings and reduce risk,” Jones added.

Modern wars tend to have a broader economic impact due to the interconnectedness of global markets, which could further amplify demand for gold. Taking all this into account, Jones concludes: “A world war could create a ‘perfect storm’ that would send gold prices soaring to record highs, driven by investor fear, economic uncertainty and a collapse in confidence in traditional financial systems.”

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