On the afternoon of February 10, the spot gold price in the Asian market increased rapidly and set a new all-time high of 2,896 USD/ounce. The gold price increased by about 34 USD, equivalent to about 1.2% compared to the end of last week.

Domestically, the price of SJC gold bars returned to VND91.3 million/tael (selling price), only slightly lower than the peak of VND92 million/tael set on May 10, 2024. The price of plain round gold rings broke the recent peak of VND91 million, setting a new record of VND91.2 million/tael.

Thus, the gold price has increased by about 800,000 VND per tael compared to last weekend.

Domestic gold prices increase mainly following international gold prices, because gold demand in Vietnam often decreases after the God of Wealth week. So what causes world gold prices to skyrocket, and will the increase continue?

World gold prices skyrocketed in the context of US President Donald Trump's new moves on taxes, as well as policies towards political conflicts in some regions of the world.

On February 9, US President Donald said he would announce a 25% tariff on all steel and aluminum imported into the country. The White House boss also plans to hold a press conference on February 11 or 12 to announce tit-for-tat tariffs on all countries that have imposed tariffs on the US.

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Gold prices rise to new record. Photo: HH

Earlier, Mr. Trump imposed a 10% tariff on Chinese goods. Beijing also responded. The China-US trade war has begun.

In addition, geopolitical tensions are escalating. The long-running conflict between Russia and Ukraine shows no signs of abating, while the situation in the Middle East continues to be tense with fighting in the Gaza Strip and threats from Iran.

During his campaign, Trump said he could end the war in 24 hours. However, speaking at his Mar-a-Lago resort on January 7, the White House chief admitted that it would take six months after taking office to resolve the Russia-Ukraine conflict.

Tensions in the Middle East also escalated after Mr. Trump's announcement that the US wanted to own the Gaza Strip, while many countries in the region objected.

These uncertainties have led investors to seek gold as a safe haven asset.

Gold prices also increased because global inflation is at risk of rising again as countries tend to introduce loose monetary policies.

Inflation in many countries remains high due to sharp increases in energy and commodity prices. Mr. Trump has reversed energy policies from his predecessor, the Biden administration, in favor of allowing the expansion of fossil fuel exploitation to reduce energy costs. However, these policies have not helped oil and gas prices fall sharply.

Central banks, including the US Federal Reserve, may find it difficult to delay interest rate cuts for long, weakening the US dollar and boosting demand for gold.

Demand for physical gold shows signs of increasing. Central banks of countries continue to increase gold purchases for reserves, especially China, India and some other Asian countries. Demand for gold jewelry in Asian countries also increases sharply, especially at the beginning of the year and during the festive seasons.

Gold ETFs are returning to buy gold in large volumes, creating strong momentum for price increases.

Many recent forecasts suggest that gold will soon surpass the $2,900/ounce threshold and head towards the $2,920/ounce resistance level. Gold will continue to increase in price in the medium term and may surpass the $3,000 threshold in the second half of the year, after geopolitical tensions are not resolved quickly.

On Kitco, a representative of Phoenix Futures and Options even said that gold could reach the $3,000/ounce mark in the first quarter as demand for physical gold is increasing as the world faces many uncertainties from tariff policies.

Forexlive representative also said that there is currently a lack of strong enough factors to reduce the increase in gold.

If the global trade war intensifies and central banks continue to buy gold heavily, gold is forecast to reach the $3,200/ounce mark.

Gold price forecast for the next 10 days: The world is increasing continuously, but gold and SJC are still cooling down? In the next 10 days, concerns about tariffs in the US-China trade war will still be the main driving force behind the continued increase in gold. Domestically, gold and SJC prices are expected to cool down after the God of Wealth day.