At the end of the trading session on March 13 in the New York market (early morning of March 14, Vietnam time), the spot gold price skyrocketed by 54.7 USD, equivalent to 1.86%, to a new record of 2,989 USD/ounce.
What is pushing gold prices to unprecedented highs, and will the rally continue?
The price increase session was fierce.
The trading session on March 13 in the New York market witnessed a historic turning point when the spot gold price, according to Kitco, jumped to $2,989/ounce, the highest ever. The increase of $54.7 in one session not only reflects the strength of the precious metal but also shows that the market sentiment is leaning towards gold as a safe haven asset.
The war situation in Ukraine shows no signs of cooling down and more time and a private conversation between Russian President Vladimir Putin and US President Donald Trump are needed for a comprehensive 30-day ceasefire agreement.
Meanwhile, conflicts in the Middle East, especially between Israel and Iran-backed militant groups, have investors worried about a protracted crisis on a global scale.
As the world faces many geopolitical risks, investors continue to turn to gold as a means of protecting their assets.
In addition, the weakening of the US dollar has pushed gold prices up. The greenback has been under downward pressure due to changes in economic policy of the US President Donald Trump's administration and signals of US inflation.
The recently released US consumer price index (CPI) report showed that inflation increased more slowly than expected, raising expectations that the US Federal Reserve (Fed) may continue to maintain flexible monetary policy and even cut interest rates in the near future.
This weakens the USD in the short term, creating conditions for gold - which is priced in USD - to increase sharply. The USD Index in the session on March 13 fell to its lowest level in 3 months, further strengthening the upward momentum of gold.
US President Donald Trump’s ambitious trade policy also played a role. His recent announcement of additional tariffs on imports from China and several other countries has raised concerns about a full-blown trade war, sending money quickly into gold instead of riskier assets like stocks and cryptocurrencies.
In addition, central banks around the world continue to increase their gold reserves. China, India and Russia are the countries actively buying gold, contributing to pushing the price of the precious metal to a record high. Meanwhile, money flowing into gold ETFs has also increased strongly, reflected in the growth of the SPDR Gold Trust.
Domestic gold up to 100 million VND/tael?
Looking further, gold prices are being influenced by a complex set of factors, from the Trump administration's policies to global economic health and investment trends.
First of all, it is Mr. Trump's policies on trade. Since taking office for his second term, Mr. Trump has continuously promoted trade protectionism measures.
On March 11, he announced on the social network Truth Social that he had directed the Ministry of Finance to raise import tariffs on steel and aluminum from several countries, a move seen as the start of a new wave of tariffs. China responded by imposing retaliatory tariffs on US agricultural products, escalating trade tensions between the world's two largest economies.
These uncertainties not only threaten global supply chains but also cause investors to turn to gold to preserve their assets.
The peace process between Russia and Ukraine remains fraught with difficulties, while the conflict in the Middle East threatens to spread. These factors not only boost oil prices but also strengthen gold’s position as a “shield” against geopolitical risks.
The US economy is showing mixed signals. Despite signs of improvement in some sectors, inflationary pressures and a huge public debt have investors skeptical about the long-term strength of the US dollar. If the Fed is forced to ease monetary policy to stimulate the economy, the US dollar could continue to weaken, creating momentum for gold to rise.
Central banks, especially those of China and India, are actively buying gold to diversify their foreign exchange reserves and reduce their dependence on the US dollar. At the same time, gold ETFs such as SPDR Gold Shares have recorded strong inflows recently, reflecting strong interest from institutional investors.
The movement of physical gold between New York and London also shows that real demand is growing, as Western investors look to protect their assets against economic volatility.
While gold prices have risen, the US stock market has been under pressure from concerns about tariffs and interest rates. US stock indexes have seen several sessions of decline this week, while the cryptocurrency market such as Bitcoin has also been very volatile due to money being withdrawn, possibly partly transferred to gold. This shift shows that gold is becoming the “king” of safe-haven assets.
With the above factors, gold prices are still predicted by many organizations such as Goldman Sachs, JP Morgan... to soon reach the 3,000 USD/ounce mark, even 3,100 USD in the next few weeks if trade and geopolitical tensions do not cool down.
On Kitco, in the early morning of March 14, expert Marcus Garvey from Australian bank Macquarie said that gold prices still have a lot of potential after surpassing the $3,000 level. Accordingly, even after breaking through this threshold, the upward momentum of the yellow metal is not over yet.
Marcus Garvey predicts gold prices will rise to a high of $3,500 an ounce in the third quarter of this year, which would match gold’s inflation-adjusted record high set in January 1980.
However, gold prices have fluctuated strongly recently. The general trend is still upward, but there are still sessions of 50-70 USD/ounce decrease in a short period of time, which poses great risks. Gold can reach a record high, then adjust sharply due to profit-taking pressure, and then bounce back if the global economy worsens.
Domestically, the price of SJC gold bars and gold rings also increased sharply following the world price. On the afternoon of March 13, gold bars reached 94.4 million VND/tael (selling price), while gold rings reached nearly 95 million VND/tael. With the current record high world price, the level of 100 million VND/tael is very close.
Source: https://archive.vietnam.vn/gia-vang-tang-boc-dau-len-gan-3-000-usd-ounce-dinh-100-trieu-dong-luong-rat-gan/
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