While the gold trading floor in New York (USA) has not returned to trading, the gold on Kitco has opened a new week session with a soaring momentum compared to the previous week.
Specifically, spot gold on this floor has increased a circuit from 1,742.2 USD / ounce last week to 1,758 USD / ounce currently, equivalent to an increase of nearly 16 USD (nearly 1%).
Price of gold futures delivered in June on Comex floor this morning (according to Vietnam time) also increased by 13.2 USD to 1,754.1 USD / ounce.
At the price of nearly 1,760 USD / ounce, world gold is trading at the highest level within 8 years. The current price is only lower than the peak of USD 1,900 / ounce that precious metals set in 2011.
Last week there was not much new information to support the precious metal price, the rise of this item still came from previous information such as concerns about US-China trade tensions, US unemployment rate. is still rising, the world economy is in decline due to the Covid-19 epidemic.
Accordingly, this was the 5th consecutive increase session of world gold.
Besides the negative information related to the world economic situation, gold also benefited from the central banks of other countries to loosen monetary policy and pump money into the market.
According to Gary Wagner, an analyst at Kitco, the world gold price has increased strongly due to the reduction of GDP of countries due to Covid-19 epidemic.
"That is inevitable. The pandemic is in the 3rd month has consequences for economies around the world. The common point is that all major countries are contractions of the economy. The difference between some countries is how they experience these contractions, ”Mr. Wagner said.
The data shows that many areas have experienced major contractions in activities such as retail and tourism.
According to a report of the US Federal Reserve (FED), US retail sales fell to a record 16.4% in April, actual industrial production also dropped to a record 11.2%. ..
In an interview with Kitco, Thorsten Polleit - chief economist of Degussa (Europe’s largest gold trading company) - said that the role of gold in financial markets will increase during the period of low growth. and high inflation today.
"Gold cannot be devalued and there is no default risk. Should hold gold because it is an asset that reduces risk and increases profits for any investor and saver," he said.
Explaining this point, the expert said in current rescue policies, large banks and businesses will receive large amounts of new printing money, while ordinary people will not receive any money. or small amount.
This leads to a redistribution of income and it will show that the rich will get richer, while many others will get poorer. Therefore, gold has become a safe haven asset for the aforementioned group of individual investors.
Expert Thorsten Polleit thinks that gold is an attractive investment at the present level. With the continuous printing of new money now, it will not take much time for the precious metal price to reach $ 2,000 an ounce.
Most experts and investors expect gold to continue to rise.
In the domestic market this morning, the selling price in many businesses reached 49 million VND / tael. The price area is close to the peak reached in late February.
However, at this price, domestic gold is still cheaper than the world to 700,000 VND / tael (at the exchange rate on the same day).
