Many factors promote gold price
According to Kitco - Gold price continues to increase due to inflationary pressure and tariff signs from US President Donald Trump. Meanwhile, the demand for gold from central banks is still strong, according to a report from Heraeus (a German global technology group, specializing in precious metals, advanced materials and biotechnology. - Reporter).
Experts from Heraeus said the demand for gold from central banks in 2024 reached nearly 1,050 tons. Although this figure has decreased slightly compared to 2023, it is still considered high, distributing gold demand is focusing mainly on a few countries. Poland, Türkiye and India are leading with a total of 235 tons of gold bought from the beginning of the year to November, accounting for 68% of the total demand of the central bank.
Poland raised the golden ratio in foreign exchange reserves from 12% in January to 17% in November, nearly reaching the target of 20%. The sharp increase in gold price in the past month helped raise the value of gold reserves to more than 41 billion USD, causing this rate to reach 18%. This is the first time Poland stopped buying gold after 8 consecutive months, reflecting the possibility of reducing the demand for purchases in the near future.
Spot gold price exceeded 2,900 USD/ounce and kept stable above this level. At the time of writing (9h05 on 11.2.2025 - Vietnam time), the spot gold price listed on Kitco reached the highest level of all time, up to 2,936.1 USD/ounce.
Gary Wagner - a commodity broker and market analysis - said to Kitco that this increase was supported by fear of inflation and the US government delayed new tariffs on Mexico and Canada, But not completely eliminated.
In addition, the capital flows into gold ETFs continues to be stable, supporting gold prices to maintain the rise. Meanwhile, the supply of material gold in the Comex market records limited import volume in the past month, showing that the demand for material gold is still high.
The influence of US trade policy on the gold market
Donald Trump's administration is maintaining a 10% tax rate for goods imported from China, while delaying 25% tax on Mexico and Canada for another 30 days. However, these measures still do not completely eliminate trade risks, which can continue to affect the precious metal market.
Heraeus said that tariff instability continues to strengthen the golden demand as a safe shelter. If inflation and trade tensions remain, gold prices may continue to increase.
Currently, gold investors still have good support factors, especially in the context that the US has not controlled inflation and tariffs are still risky factors. Gold prices can maintain momentum if the expectation of inflation continues to be inflated, especially when monetary policy has not shown signs of loosening.
In the past week, gold price continuously set a record, reaching the highest level of 2,880 USD/ounce on Wednesday. Meanwhile, the rate of blending inflation for terms 2, 5 and 10 years is still tending to increase higher than the beginning of the year. The expected inflation of the University of Michigan also increased by 20 basic points in December, which reflects the anxiety of living costs in the US increasing under the new government.
