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Gold prices are hitting record highs, both globally and in Vietnam, fueled by escalating trade tensions between the United States and China. Images of gleaming gold rings in a Hanoi shop, like those captured by VnExpress/Giang Huy, now represent a tangible symbol of this surging market. This dramatic rise reflects investor anxieties and a flight to safety.
Record-Breaking Prices in Vietnam and Globally
In Vietnam, gold ring prices reached a historic peak of VND90.5 million (US$3,594.12) per tael on Wednesday morning, surpassing the previous record set just the day before. Gold bar prices also surged to VND91 million per tael. This mirrors the global trend, where gold prices hit an all-time high of $2,853.97 per ounce, driven by fears of a renewed trade war. Spot gold closed slightly lower at $2,848.69 per ounce, but futures remained strong at $2,879.70.
Geopolitical Uncertainty Drives Demand
The escalating trade dispute between the US and China is the primary driver behind this gold rush. President Trump's refusal to engage quickly with President Xi Jinping, coupled with new tariffs imposed by both sides, has stoked investor uncertainty. This has led to a surge in demand for gold, a traditional safe-haven asset during times of economic and political turmoil. As Ilya Spivak, head of global macro at Tastylive, noted, "$3,000 per ounce is the next major inflection point for gold," with further escalation in the trade war potentially increasing demand even further, particularly from China adding to its gold reserves.
More than Just Trade
Beyond the US-China trade war, other geopolitical factors contribute to the gold price increase. Ongoing conflicts, such as the situation in Gaza, add to the global uncertainty, making gold even more attractive. Analyst Charu Chanana from Saxo Capital Markets aptly summarized the situation: “Who doesn’t like a safe-haven in this scenario?”
A Cautious Outlook
While the gold market is experiencing a remarkable surge, it's important to note that other economic factors could play a role. Inflationary pressures and interest rate decisions by the Federal Reserve also influence gold's attractiveness. The current situation underscores the complex interplay between geopolitical events, economic indicators, and investor sentiment in shaping gold prices.
Stay Informed
The gold market is dynamic and constantly influenced by global events. To stay updated on the latest price movements and market analysis, follow reputable financial news sources and consider consulting with a financial advisor before making any investment decisions. The future direction of gold prices remains uncertain, but the current trends suggest a continued period of volatility and potential for further growth.
