According to Kitco, the recent surge in gold prices has pushed the precious metal to a record high. Florian Grummes, CEO of Midas Touch Consulting, said that since the end of June alone, gold prices have increased by about $400 per ounce. Gold prices reached a peak of $2,685 per ounce on September 26.
“However, the gold market initially entered a consolidation phase over the past three weeks and pulled back several times. However, the psychological level of $2,600/oz was easily defended, leading to a significant recovery in gold, reaching $2,661/oz last Friday.”
Grummes pointed to the combination of the first US interest rate cut, a weaker US dollar and geopolitical tensions in the Middle East as sustainable support for gold prices recently.
While gold saw a rally last Friday, pushing the precious metal from $2,635 an ounce to $2,660 an ounce, Grummes cautioned that the rally is far from certain. Gold would need to break above $2,660 an ounce; then surpass its recent all-time high of $2,685 an ounce.
Only when these technical barriers are overcome can one be sure that the uptrend can continue. After a four-week “rest” period, it is clear that gold prices want to go higher. Therefore, a new breakout is just a matter of time.
Elsewhere, while the People's Bank of China's gold purchases have slowed in recent months, Grummes said there are still compelling arguments that China will remain a demand country in the medium to long term.
“In addition, emerging market central banks are likely to use any major drop in gold prices to buy in. In addition, retail investors in the US and Asia are flocking to gold dealers.
The return of Western investors to the precious metals sector is expected to lead to further demand in the coming months. This could further strengthen the precious metals market and contribute to the medium-term gold price to $3,000/ounce,” he said.
“Either way, this pullback will serve as a springboard for the next rally,” Grummes concluded.
Update domestic gold price
Recorded at 2:45 p.m. on October 15, the price of SJC gold bars was listed by DOJI Group at 83-85 million VND/tael (buy - sell).
Meanwhile, Bao Tin Minh Chau listed the price of SJC gold at 83 - 85 million VND/tael (buy - sell).
At the same time, the price of 9999 Hung Thinh Vuong round gold ring at DOJI is listed at 82.95-83.85 million VND/tael (buy - sell).
Bao Tin Minh Chau listed the price of round smooth gold at 82.93-83.83 million VND/tael (buy - sell).
