Gold and silver prices are expected to rise as global investors turn to safe haven assets in the face of trade and geopolitical fluctuations.
World gold price at 3:21 PM on February 23rd Vietnam time traded at 5,138.3 USD/ounce, up 31.62 USD, equivalent to an increase of 0.62%.
Silver prices reached 86.12 USD/ounce, up 1.53 USD, equivalent to an increase of 1.76%. This development reinforces expectations that the precious metal still has room to rise in the coming sessions.
According to experts, the market is following a series of important US economic data, including the producer price index (PPI), the number of first weekly jobless claims, consumer confidence and regional indicators from the Federal Reserve (Fed).
Besides, there is the decision on the basic lending interest rate of the People's Bank of China - a factor that could affect the demand for precious metals in the world's second largest economy.
Brokerage firm Choice Broking believes that the recent ruling of the US Supreme Court rejecting the global counterpart tax has increased market volatility, thereby triggering safe haven demand.
After this ruling, President Donald Trump signed an executive order imposing a 10% global tariff, then raising it to 15%, making investor sentiment more cautious.
The above developments caused the USD to weaken to 97.8 points at one point before recovering again. However, trade risks and increased geopolitical tensions continued to support gold prices.
Mr. Prathamesh Mallya, Deputy Director of Non-Agricultural Goods and Currency Research at Angel One, said that the re-emergence of tensions in the Middle East, the Russia-Ukraine conflict and widespread volatility in the financial market have prompted a part of investors to increase their holdings of gold as a hedging tool.
Choice Broking also noted that improved liquidity after the Lunar New Year holiday in Asia, along with stable industrial demand from the solar and aluminum sectors, supported a sharp increase in silver prices. Silver often benefits in double terms as it is both a precious metal and plays a raw material role.
According to analysts, the fact that gold surpassed the 5,100 USD/ounce mark last week shows that buying power is still maintained positively. US-Iran tensions escalating, including the US strengthening military presence near Iran, are seen as a factor to supplement "geopolitical risk compensation" for the precious metals market.
In that context, the last trading week of February - coinciding with the God of Wealth Day in Vietnam - may witness strong fluctuations in gold prices. If US economic data shows that manufacturing inflation is still high or consumer confidence weakens, expectations about monetary policy may change, directly affecting the price of precious metals.
Analysts believe that the main short-term trend still leans towards increase, but the fluctuation range may be large as the market reacts quickly to each new piece of information. Regarding domestic gold prices in the Vietnamese market, after the Tet holiday, brands have increased the selling price of gold bars by an additional 3.6 million VND per tael.
As of 2:26 PM on February 23, SJC gold bar prices and Bao Tin Minh Chau 9999 gold ring prices were both traded at 181.6 - 184.6 million VND/tael (buying - selling).
Investors are recommended to closely monitor economic indicators and geopolitical developments to assess risks before making a trading decision during the peak gold buying season at the beginning of the year.
In the Vietnamese market, domestic experts note that, in the face of unpredictable fluctuations in domestic and international gold prices, investors and people should consider before trading and regularly monitor gold prices on official channels to make the most correct decisions.
