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Gold price is forecasted to enter a new increase

Closing session of the weekend, gold price The world traded at 1,847.2 USD/ounce, up nearly 30 USD compared to last week. Equivalently, world gold is close to 52 million VND/tael (excluding taxes and fees). Gold prices rebounded for the week as the dollar cooled from a 20-year high.

Gold price is forecast to enter a new rally - Photo 1.

The majority of opinions predict that the price of gold will continue to increase. (Photo: Bloomberg)

For the whole week, the world gold price increased by 1.8% compared to the previous week, ending a series of 4 consecutive weeks ending at the lowest level in 3 months.

After gold bounced off support below $1,800 an ounce, Wall Street analysts and retail investors alike expect a breakout in the precious metal next week.

Wall Street analysts and retail investors alike are bullish on the precious metal next week, according to Kitco News weekly gold survey results. Analysts expect the precious metal’s appeal as a safe-haven asset will shine once again. The majority of opinions predict that the price of gold will continue to increase.

Of the 16 Wall Street analysts polled by Kitco News, 12 (75%) expect the precious metal to rise next week. In contrast, only 1 person (6%) predicts a decline in gold prices and 3 people (19%) see the precious metal moving sideways.

Meanwhile, the majority of investors participating in the Main Street online poll expect the precious metal to continue to rise. Specifically, out of 1,003 participating investors, 558 people (56%) believe that the gold price will increase next week; 243 people (24%) think the precious metal will decline and the remaining 202 investors (20%) expect gold to be flat.

Adrian Day, Chairman of Adrian Day Asset Management, said he is optimistic about gold as risks are increasing with the possibility that the US economy may fall into a recession, due to rising inflation or policy mistakes from the past. US Federal Reserve (FED). According to him, the Fed will not be able to achieve its goal of bringing inflation down to 2% without causing a recession.

In the same vein, Phillip Streible, market strategist at Blue Line Futures, said he is optimistic about gold prices as investors look to hedge against further weakness in financial markets.

“In the current environment, both gold and USD are ‘companioning’ as safe-haven assets,” said Mr. Phillip Streible, adding, “the stock market could still turn out to be a lot worse. There are signs that economic conditions in the US are starting to deteriorate.”

Notably, on the market, the world’s largest gold ETF – SPDR, after a series of continuous net selling days, turned to be net buyers in the last 2 sessions of the week.

In general, during the week, SPDR net bought 14.22 tons of gold while the first 2 sessions of the week still net sold 6.68 tons of gold. Thus, the amount of gold owned by SPDR increased to 1,063.43 tons, an increase of 7.54 tons compared to the end of last week.

Many analysts now expect gold prices to break through initial resistance at $1,850 an ounce as the greenback loses some of its upside, sending the US Dollar Index off to end the week down about 1.4%. . In addition, bond yields continue to fall after touching a 3-year high above 3% 2 weeks ago.

Colin Cieszynski, market strategist at SIA Wealth Management, said that the dollar has been trending down recently. On the contrary, gold started to regain its upward momentum. The continued uncertainty and volatility in financial markets will continue to support precious metals, he assessed.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank (Switzerland), thinks that gold prices are testing resistance at the 200-day moving average near $1,837 an ounce. A break out of this level could lead to a move towards the $1,880-1,900 zone and a shock in gold supply in Russia could support this outlook.

Domestic gold price

Gold price is forecast to enter a new rally - Photo 2.

Last week, the domestic gold price did not fluctuate much. (Photo: Bloomberg)

This morning (May 22), the domestic gold price slowed down and traded near the threshold of 69 million dong/tael bought and 70 million dong/tael sold.

SJC gold price early this morning in Hanoi area was listed by Saigon Jewelry Company at 68.95 – 69.87 million VND/tael (buy in – sell out). In Ho Chi Minh City, SJC gold is being purchased at a similar rate to Hanoi, but sold for less than 20,000 VND. Thus, compared with dawn of the previous day, SJC gold price increased by 50,000 dong in both directions.

Meanwhile, Phu Quy Jewelry Company increased the price of SJC gold by 100,000 dong in the buying afternoon to 69 million dong/tael and kept the selling price at 69.7 million dong/tael.

At DOJI Jewelry Group Joint Stock Company, the business kept the same trading price of SJC gold on Saturday at 68.9 – 69.6 million VND/tael/tael (buy in – sell out). .

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