| Why do experts predict the world gold price to increase by 6% in 2024? How will the gold and USD prices fluctuate after the FED meeting? |
2023 and the first months of 2024 have witnessed many geopolitical instabilities in the world, in which the Russia-Ukraine war and the war between Israel and Hamas in the Gaza Strip are still tense. And it is this instability that has greatly affected the fluctuations of world gold prices.
On October 28, 2023, three weeks after the Israel-Hamas war, gold prices hit a record high of over $2,000 an ounce. Gold prices also hit a similar level on March 7, 2022, two weeks after Russia launched military action in Ukraine.
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| Despite the volatile geopolitical situation in the world, experts still predict that gold is a promising investment channel. |
To explain why gold prices are increasing, in an interview with Mint, Mr. Anshul Gupta, co-founder and chief investment officer at Wint Wealth (India) shared: “Gold is like insurance. The ongoing conflicts between Russia - Ukraine and Israel - Palestine can disrupt geopolitical balance, global supply chains, and investors' confidence in financial instruments. To minimize risks, investors will focus on gold” .
Furthermore, gold also acts as a hedge against inflation and economic instability from war. " Inflation erodes the purchasing power of traditional currencies, making fixed-income investments less attractive. However, gold tends to maintain its value during inflationary times, preserving investors' wealth," Mahendra Luniya, chairman of Vighnaharta Gold, told Mint.
With the war in Gaza not yet over and the Ukraine-Russia war still having "hot" developments, experts predict that gold will continue to be a promising investment channel.
According to a survey, early this morning, March 20, 2024, the world spot gold price stood at around 2,157.4 USD/ounce, up 0.4 USD/ounce compared to last night (March 19). The price of gold futures for June 2024 on the Comex New York floor was at 2,181.8 USD/ounce. Recorded at 4:00 p.m. the same day, on Kitco, the world gold price was at 2,155 USD/ounce, down 2 USD compared to early this morning.
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| Gold price at Saigon Jewelry Company - SJC at 5:00 p.m. on March 20, 2024 |
In the domestic market, in the early morning of March 20, gold prices were adjusted up slightly. The highest buying price of SJC gold bars was at 79.7 million VND/tael and the highest selling price reached 81.72 million VND/tael.
Specifically, at Saigon Jewelry Company, SJC gold increased by VND200,000/tael in both directions, to VND79.7 million/tael for buying and VND81.7 - 81.72 million/tael for selling. However, on the afternoon of March 20, the price of SJC gold decreased by VND300,000/tael in both buying and selling, to VND81.4 million/tael (selling). Although the gold price turned down, it was still at a high level.
According to economic experts, SJC gold bars and gold rings will continue to fluctuate in the next 10 days due to policy risks. Previously, the State Bank said that this agency will evaluate and amend Decree 24 on gold market management in the first quarter and take measures to stabilize this market.
With the difference between the world price and the world price still very large, up to 16 million VND/tael for SJC gold bars and about 4-5 million VND/tael for gold rings as at present, if the supply of SJC gold bars is improved, it is likely that the domestic gold price will fall even further.
At this time, investors are still quite cautious with gold, especially in the last 10 days of March. According to experts, the price of precious metals is currently quite high, investors and people should consider before trading and regularly monitor gold prices on official channels to make the most correct decisions.
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