Gold prices are expected to continue to increase.
Gold prices are still expected to increase next week by experts and investors, but the percentage of people predicting an increase has decreased compared to last week.
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| Gold prices are expected to continue to rise next week. |
In Kitco's Wall Street survey of 16 market professionals, 12, or 75%, said gold would be higher next week, compared with 93% last week. Two said prices would fall, and the rest said they would trade sideways.
Meanwhile, this week’s Main Street Kitco online poll saw its highest number of participants in a year, with 910 people taking part. A total of 599 people, or 65%, called for gold to rise. Another 187 people, or 21%, predicted gold would fall. The remaining 124 people, or 14%, saw a sideways market.
The market still expects gold prices to increase even though the price last weekend adjusted down to below 1,500 USD/ounce. After climbing to 1,510 USD/ounce, an increase of 210 USD/ounce, equivalent to 6% in more than 2 months, investors took profits in large numbers, causing the price to adjust to 1,498 USD/ounce. However, for the whole week, gold still recorded an increase of 50 USD/ounce compared to the beginning of the week.
Economic and political uncertainties continue to support gold. Gold prices rose after China allowed the yuan (CNY) to rise above 7 CNY to 1 USD. This is the first time in more than a decade that the country has let the yuan fall below 7, raising concerns that the US trade war has developed into a currency war.
The domestic gold market last week saw a sharp increase in price, up to 1.6 million VND/tael after reaching a peak of 42.4 million VND/tael. Although it decreased following the world gold price at the end of the week, the decrease in domestic gold was stronger due to stronger selling pressure, about 650,000 VND/tael, equivalent to 22 USD/ounce, while the world gold price decreased by about 12 USD/ounce. Gold traders are afraid of risks, so they forced the buying price down.
The USD market last week also had strong fluctuations with an upward trend followed by a downward trend. Commercial banks sharply increased the USD selling price at the beginning of the week to 23,310 VND and then quickly decreased to 23,260 VND. The greenback on the free market had a selling price 20 VND lower than the bank price, at 23,240 VND, and a buying price about 50 - 60 VND higher, at 23,210 VND.
