Gold is seeing a strong rally following industry support measures from China, according to analyst Vladimir Zernov at FX Empire.
Gold hit an all-time high on Tuesday after the People's Bank of China (PBOC) cut lending rates and reduced the reserve requirement ratio for commercial banks in an effort to boost the country's slowing economy.
This expert predicts that if the gold price stabilizes above $2,650/ounce, the future will move towards the threshold of $2,700/ounce.
In addition, the recent gold price has continuously reached new peaks thanks to the monetary policy adjustment of the US Federal Reserve (FED). Last week, the FED cut the base interest rate by 50 basis points, lowering the federal funds rate to 4.75 - 5%.
Explaining this decision, FED Chairman Jerome Powell said the policy adjustment will help maintain the strength of the economy and labor market, and will continue to promote the process of controlling inflation as the FED begins to move towards a more neutral policy.
With gold prices continuing to climb to new records, analyst Arman Shaban at TradingView - commented: "Recent developments could soon push the precious metal above $3,000/ounce."
Sharing the same view, Mike McGlone - senior commodity strategist at Bloomberg Intelligence commented: "Gold reaching $3,000/ounce is just a matter of time.
Hedge funds are positioning themselves to buy, reflecting their belief in the staying power of the precious metal. Hedge funds are net longs of about 40% in gold futures,” McGlone said in an interview with Kitco News.
Meanwhile, Bob Haberkorn, senior market strategist at RJO Futures, also sees gold prices continuing to rise. He said speculation surrounding geopolitical tensions in the Middle East has boosted safe-haven demand for gold.
This expert predicts that gold could surpass $2,700/ounce, as early as this weekend, if tensions continue to escalate and there is more information about interest rate cuts.
Traders are now awaiting comments from Fed Chairman Jerome Powell and U.S. inflation data due later this week. Earlier, Chicago Fed President Austan Goolsbee sent shockwaves through markets by predicting more cuts next year.
Update domestic gold price
As of 3:00 p.m. on September 25, the price of SJC gold bars was listed by DOJI Group at VND81.5 - 83.5 million/tael (buy - sell). The difference between the buying and selling prices of SJC gold at DOJI Group was VND2 million/tael.
Meanwhile, Bao Tin Minh Chau listed the price of SJC gold at 81.5 - 83.5 million VND/tael (buy - sell).
At the same time, the price of 9999 Hung Thinh Vuong round gold rings at DOJI was listed at 82 - 83 million VND/tael (buy - sell).
Bao Tin Minh Chau also adjusted the price of plain round gold rings to increase to 81.88 - 82.98 million VND/tael (buy - sell).
