Rising inflation pushes gold prices up

6 am this morning April 13 (Vietnam time), world gold price on the Kitco floor traded at 1,966 USD/ounce, up 8 USD/ounce compared to the early hours of the morning.

Gold prices rose sharply after the US inflation report for March was released with an increase of 8.5% year-on-year, higher than expected to increase by 8.4% and also the highest level in 40 years. .

The US is issuing a warning that the war between Russia and Ukraine will take place in a “prolonged and bloody” direction. European countries are focusing more on arming the Ukrainians and reducing sanctions economy for Russia.

In China, the Covid-19 pandemic continues to increase in the world’s second largest economy. The strict closure in Shanghai has put other Chinese cities in “dangerous” position.

Domestic gold price

At the end of the trading session on April 12, Saigon Jewelry Company listed the price of SJC gold at 68.85 million dong/tael (buying in) and 69.52 million dong/tael (sold out).

DOJI Group listed the gold price at 68.8 million dong/tael (buying in) and 69.5 million dong/tael (sold out).

Gold price forecast

Gold is forecasted to continue to increase in the context of high inflation and may cause a recession when prices of many commodities have gotten out of control.

According to the Bank of America (BofA), the inflation shock is getting worse as the rate hikes kick in and the recession shock hits.

Investors believe that the US Federal Reserve (FED) is in a dilemma because high interest rates will prevent the economy from recovering from the pandemic. And so, gold may become a safe haven in the near future.

The US bank Goldman Sachs has just made a forecast that the price of gold will exceed $ 2,500 / ounce this year.