Why can the world gold price reach 3,000 USD?

Gold prices are hovering near record highs after tensions between Iran and Israel flared up on April 14, boosting the metal’s appeal as a safe-haven investment. Gold hit another record high on Monday, with June gold futures up 0.37% to $2,383 an ounce. Bullion hit an all-time high of $2,448.80 an ounce on Friday. Gold has gained 14% so far this year, according to CNBC.

Gold prices will reach 3000 USD/ounce if Iran - Israel tensions continue.
Photo source: Andrey Rudakov, Bloomberg.

Although Israel successfully thwarted Iran’s recent attack, its leaders have threatened that Iran “will pay a heavy price.” Bartosz Sawicki, a market analyst at international financial services firm Conotoxia, said Israel’s retaliation could lead to a spillover of conflict in the Middle East, which would boost gold prices, as well as oil prices and the US dollar.

However, concerns about Middle East geopolitical tensions are not the only reason for the rise in gold prices. Investors are also wary of persistently high inflation in the United States and the possibility of interest rate cuts by the Federal Reserve. In fact, gold is considered a hedge against inflation, and tends to rise in price during times of economic uncertainty, as investors shy away from riskier assets like stocks.

Gold prices also have an inverse relationship with interest rates. When rates fall, gold becomes more attractive compared to fixed-income assets such as bonds, which offer lower returns. Worse-than-expected U.S. inflation data in March pushed market expectations for two rate cuts instead of three.

Another reason that could be driving gold prices higher is on the sellers’ side, according to Gregory C. Shearer, an analyst at JP Morgan. “The most surprising observation for us is that there has been less selling than expected in the context of the spike in gold prices. In fact, rather than being driven by buying demand, it seems that the early April rally was more about a lack of sellers,” he told CNBC. — CNBC’s Michael Bloom contributed to this report.

How will gold prices fluctuate in the future?

Sharing with Mint, Mr. Anuj Gupta, Director of Commodities and Currencies at HDFC Securities (India) financial company, commented: “In the international market, gold prices are in the range of 2,360 USD to 2,400 USD/troy ounce. When overcoming the 2,400 USD barrier, gold prices may increase to 2,430 USD/ounce in the near future.”

More optimistically, Mr. Aakash Doshi, head of commodity research at Citi Bank (USA), said: " We predict that gold will reach $ 3,000 / ounce in the next 6-18 months" . In the announcement on April 15, the bank representative cited the increasingly heated geopolitical situation and record-breaking stock market index as the reasons for this growth.

Assessing the future price of gold, a representative of Goldman Sachs Bank (USA) said that the upward momentum of the gold market is "unshakeable", quoted by CNBC channel. It is known that this bank has also adjusted the target price of gold from 2,300 USD/ounce to 2,700 USD/ounce by the end of this year.

JPMorgan, on the other hand, is forecasting that bullion prices will average $2,500 an ounce in the fourth quarter, but Gregory C. Shearer, a representative of the bank, said that tensions in the Middle East and Russia's gold ban could push gold prices higher. "Given recent volatility, gold prices may still face risks in the near term, although geopolitical factors will increase the buying trend. However, overall, we believe that any price decline will be minor and gold prices will continue to rise in the coming quarters," he said.

World gold price recorded at 11:11 on April 17, 2024

As of 11:11 a.m. on April 17, 2024, the world gold price was fluctuating at 2,381 USD/ounce, down 1.10 USD compared to the previous day. The gold futures price on the Comex floor decreased by 9.10 USD (or 0.38%), currently fluctuating at 2,398.70 USD/ounce.

Gold price listed at Saigon Jewelry Company Limited at 11:07, April 17, 2024

As of 11:11 a.m. on April 17, 2024, the domestic gold price has increased slightly compared to yesterday's price, and is significantly different from this morning. In the buying direction, the SJC gold price listed by Saigon Jewelry Company Limited is 82.3 million VND/tael, an increase of 600,000 VND/tael compared to this morning. In the selling direction, the gold price also increased by 500,000 VND/tael compared to this morning, currently at 84.3 million VND/tael.

Giving advice to investors who have previously held gold, many experts recommend that if the profit level is attractive, investors and people should sell to make a profit. At this time, investors should limit buying gold to store, waiting for management instructions from the Government or the State Bank. If buying gold when the price is at its peak, investors may face the risk of loss.

Source: https://congthuong.vn/vi-sao-gia-vang-the-gioi-co-the-len-toi-3000-usd-315232.html