Gold prices unexpectedly surpassed $1,200.

Instability in Greece and escalating tensions between Russia and the US are driving investors to seek refuge in gold.

The US market surged rapidly minutes after opening, rising from $1,185 an ounce to nearly $1,210 an ounce.

At the close of trading, gold prices rose by more than $17.4 to $1,200 due to a weaker US dollar, falling stock markets, and concerns about tensions between Russia and the West. The upward trend continued this morning, reaching $1,201 at 8:00 AM (Hanoi time), equivalent to 31 million VND per tael (approximately 37.75 grams), excluding taxes and fees. Domestic prices closed yesterday at 34.94-35.12 million VND.

Downward pressure continues to prevail in the gold market.

Prices for February futures contracts also rose $18.50 to $1,200.40 an ounce. Yesterday, risk aversion prevailed across global markets. Greece's snap elections and the possibility of leaving the eurozone caused European stocks to fall. The drop in crude oil prices also impacted investor sentiment. Yesterday, the Dollar Index fell 0.3%, due to a stronger yen as investors viewed it as a safe haven against upcoming economic risks. Concerns about escalating tensions between Russia and the West also provided some support to the market.

The Russian Foreign Ministry stated yesterday that the US expansion of sanctions would harm both sides. “Gold was heavily bought on the Comex, at one point reaching $1,202 for the February contract next year,” a London investor said.

Physical demand also supported prices yesterday, with selling prices on the Shanghai exchange being $4 per ounce higher than the global price.

However, from a technical perspective, the market is still considered to be trending downwards, as the price has yet to break through the long-term resistance level of $1,235. “What’s encouraging for the optimists is the stronger trading volume today compared to the past few days. But until the price breaks above $1,235, they can’t celebrate,” commented Teddy Sloup, senior market strategist at iiTrader.

Overall this year, gold has lost 1%, mainly due to a stronger USD and the possibility of a US interest rate hike.

On the crude oil market, prices rose slightly yesterday due to supply disruptions from Libya and forecasts of reduced US supply. WTI and Brent crude closed yesterday at $54.12 and $57.90 per barrel, respectively. This year is considered the worst year for crude oil since 2008.

According to VnExpress