Gold prices continue to increase "through the ceiling" or is it a bubble, about to have a strong correction?

Gold price today October 18, 2024: World gold price hits all-time high. Domestic gold price "stabilizes" at peak, gold rings continue to set a record of more than 84 million per tael, making a profit of up to 33%. So has the gold price reached its ceiling or is it in a bubble?

Update gold price today October 18, 2024

World gold prices are increasing rapidly and are still on track to reach the top.

According to The World & Vietnam Newspaper , the international gold price traded on the Kitco electronic floor, at 6:30 p.m. on October 17 (Hanoi time), was at 2,687.00 - 2,688.00 USD/ounce , an increase of 12.8 USD/ounce compared to the previous trading session.

Gold prices on the international market increased sharply despite the USD also increasing sharply, when the world geopolitical situation was "hot" in many regions, in the context of the US about to enter the presidential election (November 5), Middle East tensions continued to escalate and could spread; the Korean peninsula experienced a tense week... With the series of instabilities mentioned above, money flows tend to seek safe assets, including gold.

While the sideways trading pattern of recent weeks may have gold bulls a little worried, the precious metal’s uptrend is still receiving plenty of support and prices are seen as having yet to peak.

According to data from expert Ronnie Stoeferle - Managing Partner at Incrementum, “+28.1%, +27.2%, +28.3% – are the impressive performance of gold in the first 9 months of this year in USD, Euro and Swiss Franc terms”. The year-on-year performance (as of the end of September) is even more impressive with the corresponding figures of +42.3%, +35.0%, +31.1%.

With such impressive increases, the question is always asked: "Has the gold price reached its ceiling or is it even in a bubble, like in the early 1980s, and is there a significant correction coming?"

Domestic gold prices remain at peak levels, while gold ring prices set new records.

After a strong increase on October 16 , the price of SJC gold bars continued to move sideways, maintaining the peak of 84 - 86 million VND/tael (buy - sell) at major trading brands such as Saigon Jewelry Company, DOJI Group, Phu Quy and Bao Tin Minh Chau...

The price of 9999 plain round gold rings set a new record of 84.45 million VND (selling), increasing by nearly half a million VND per tael on the morning of October 17. Major business brands simultaneously adjusted the price of 24K plain gold rings to a new record. Thus, in just a few days, each tael of gold rings has increased by about 1 million VND. Since the beginning of the year, gold rings have recorded a profit of more than 33%.

Saigon Jewelry Company (SJC) adjusted the price of gold rings to 82.9 - 84.1 million VND. Phu Nhuan Company (PNJ) raised the price of gold rings to 83.3 - 84.3 million VND. DOJI Group and Bao Tin Minh Chau raised the price of buying and selling plain gold rings to 83.45 - 84.45 million VND/tael.

Converted to the USD exchange rate, the world gold price is around 2,677 USD/ounce, equivalent to 81.7 million VND/tael. Accordingly, the domestic price is about 2.5-4.5 million VND/tael different from the world price.

However, currently, it is not easy for people in the country to buy plain gold rings or gold bars. Plain rings at many major brands are often in short supply. Registering to buy gold bars at the 5 units authorized by the State Bank is also not easy, time-consuming and the maximum quantity is only 1-2 taels.

Gold price today October 18, 2024: Gold price continues to increase 'to the ceiling', the price increase cycle is not over yet, is there a significant correction coming soon? (Source: Kitco News)

Summary of SJC gold bar prices at major domestic trading brands at the closing times of last weekend's trading sessions (October 12 ):

Saigon Jewelry Company: SJC gold bars 84 - 86 million VND/tael; SJC gold rings 82.9 - 84.1 million VND/tael.

Doji Group: SJC gold bars 84 - 86 million VND/tael; 9999 round rings (Hung Thinh Vuong) 83.45 - 84.45 million VND/tael.

PNJ system: SJC gold bars 84 - 86 million VND/tael; PNJ 999.9 plain gold rings at 83.3 - 84.3 million VND/tael.

Phu Quy Gold and Silver Group: SJC gold bars: 84 - 86 million VND/tael; Phu Quy 999.9 round gold rings: 82.5 - 83.45 million VND/tael.

SJC gold price at Bao Tin Minh Chau is listed at 84 - 86 million VND/tael; plain gold rings are traded at 83.45 - 84.45 million VND/tael.

Can gold prices go higher?

Incrementum Managing Partner Ronnie Stoeferle says he doesn't believe precious metals prices are in a "bubble" and there are compelling reasons why gold is actually not overvalued.

According to Ronnie Stoeferle's analysis: "The first reason is that, although the price of gold has increased by more than 30% to over $2,600 in less than 6 months, even though this yellow metal reached a trading level above $2,675/ounce on the spot market, when adjusted for inflation, gold has not reached an all-time high. Therefore, according to this expert, "concerns that the price of gold will have a strong correction now are unfounded".

Another positive sign that gold prices could rise further is that the current rally is much more stable and sustainable than the rally in the late 1970s. And in particular, a key factor supporting the rally is that demand for gold remains high; The third major driver that continues to support gold is falling interest rates, which are also boosting gold prices; The next reason why gold prices are still rising is the current geopolitical environment, which shows no signs of cooling down anytime soon."

Since the beginning of the year, the world gold price has increased by nearly 30%. However, many forecasts still believe that gold will surpass the threshold of 2,700 USD/ounce by the end of this year and may reach 3,000 USD/ounce by early 2025. However, recently, many experts have not overestimated the upward trend of gold prices. Experts recommend that investors should only allocate a small proportion of their portfolio to this safe haven, especially in the context of the precious metal's strong increase in recent times.

In addition, the pressure to take profits on gold is also warned to be quite large, every time gold climbs close to the record peak of 2,685 USD/ounce, as recorded on September 26.

Source: https://baoquocte.vn/gia-vang-hom-nay-18102024-gia-vang-tiep-tuc-tang-kich-tran-hay-dang-bong-bong-sap-xay-ra-mot-dot-dieu-chinh-manh-290367.html