Gold Rush: Prices Soar to Unprecedented Heights, Shattering Records at $2,600/oz

Gold price today, September 22, 2024, on the world market closed the week increasing, continuously setting new records. Domestic gold ring price increased rapidly, exceeding 80 million VND/tael.

Gold price sets new record

The US Federal Reserve’s decision to start cutting interest rates for the first time since 2020 has created a ripple effect in the financial market. The Fed’s 50 basis point interest rate cut has had a strong impact on world gold prices this week. After the Fed’s decision on September 19, gold prices immediately skyrocketed to $2,594/ounce.

From its peak, the world gold price fell slightly, then rebounded to a new record. The gold price increase was driven by increasing geopolitical tensions in the Middle East. The White House expressed deep concern about the escalating conflict between Israel and Hezbollah.

In times of political and economic uncertainty and low interest rates, gold is seen as a safe haven asset. Gold’s steady performance reflects growing investor demand.

From 2,573 USD/ounce, the world gold price skyrocketed to 2,617 USD/ounce. By the end of the week, a new record was set, the gold price reached 2,625.79 USD/ounce.

World gold prices increase sharply. Photo: Kitco

At the end of the week, the world gold price traded at 2,621 USD/ounce. The December 2024 gold futures price traded at 2,647 USD/ounce.

Adrian Day, chairman of Adrian Day Asset Management, said that there is nothing stopping the gold price rise. Gold prices only fell slightly before breaking out strongly, recording many new records in a short time.

Chinese central banks and investors have dominated the market for the past two years. Now the West is returning to the gold market due to low interest rates and slowing economies.

According to experts, with monetary policy, geopolitical developments, and positive gold investor sentiment, gold prices are likely to fluctuate strongly in the coming months.

On September 20, the price of 9999 gold bars at SJC was 80 million VND/tael (buy) and 82 million VND/tael (sell). Doji listed it at 80 million VND/tael (buy) and 82 million VND/tael (sell).

Gold Price Forecast

Assessing the outlook, according to experts, as the Fed begins its rate easing cycle, gold prices are likely to move higher next week and throughout the rest of the year.

Jerry Prior, managing director and senior portfolio manager at KMLM, said that following Fed Chairman Powell’s comments, gold prices are unlikely to go parabolic but the market will continue to see steady gains.

Julia Khandoshko, CEO of European brokerage Mind Money, expects gold prices to stabilize as they trend toward $3,000 an ounce. However, it is unlikely that prices will reach that level this year.