Concerns about a weak dollar coupled with world tensions today are believed to be the main reasons for the rise in gold prices both domestically and internationally.
World and domestic gold prices have increased in recent days. By the end of the trading session on June 21, gold price was listed by Doji Gold and Silver Group to reach VND 38.82 million / tael (bought in) and VND 39.02 million / tael (sold out). This number increased by about VND 600,000 / tael compared to the trading session on June 20. Calculated, from June 19-21, gold price increased by more than 1.5 million dong / tael in both directions of buying and selling.
In the world market, gold price has surpassed USD 1,400 / ounce in the trading session on June 21 and reached the highest level since 2013. The highest price of this precious metal in the trading session yesterday was 1,412. / ounce, but at the end of the afternoon, it adjusted and reached the threshold of 1,390 USD / ounce.
Explaining the cause of consecutive price increases and 'galloping' of gold prices, analysts when investors are concerned about instability, they will come to gold because they think it is a safe trading channel.
Accordingly, the most important reason made the gold price increase strongly because the US Federal Reserve (FED) announced the decision to keep the basic interest rate at 2.25 – 2.5% after a long meeting. 2 days. However, FED representatives also left open the possibility of preparing for the first time after 11 years of interest rate cuts. This decision caused the dollar to be sold very strongly in the market while the stock market, gold, oil … simultaneously increased prices. Investors feel insecure when investing in the USD after FED's announcement so they bought a lot in other commodities.
Not only that, the political instability in recent times is also a cause of the rise in gold prices. In the past few days, there are 2 political events in the world. The first is the tension between the US and Iran when the Middle East country drops down unmanned American aircraft. The second is that Chinese leaders visit Korea before attending the G20. Investors are concerned about possible instability between States. They also believe that investing in gold will be safer than other channels.
Besides, US-China trade tension is also greatly affecting global trade. These two countries have not come to a common agreement to make investors feel secure. This will cause the dollar value to be affected. At that time, people will invest in gold to be safer.
Analysts say that gold prices this year could reach about 1,600 USD / ounce. At present, trading and banking funds are all buying countries with lots of gold. If converted into Vietnamese currency, the domestic gold price is lower than the gold price of about 550,000 – 600,000 VND / tael. Many Vietnamese people are now taking advantage of the high price of gold to sell.