World gold prices may increase for the fourth consecutive week

World gold prices recorded a third consecutive weekly increase and reached the highest level since May. The spreading conflict in the Middle East along with reports of strong US economic growth are factors leading to the recent rise of the precious metal.

The US Bureau of Economic Analysis (BEA) has released its PCE inflation report for September. Accordingly, the report recorded that the US PCE inflation index reached 3.4% compared to the same period last year in September.

Risks in the credit system are also creating safe-haven demand for gold, according to Ryan McIntyre, managing partner at financial firm Sprott Inc. Gold prices have held steady while bond yields hit 5%, a 16-year high.

In addition, many investors are worried about the financial prospects of the US government . The government's defense debt is increasing, exceeding 33 trillion USD.

Developments in world gold prices. Photo: Kitco

According to Kitco News, 11 Wall Street analysts participated in the Gold Survey. Six experts, or 54%, expected higher prices this week. Three analysts, or 27%, predicted lower prices and two others, or 18%, were neutral.

In addition, in the online Main Street poll, 602 votes were cast. Of those, 395 retail investors, or 66%, expect gold to rise next week. Another 126, or 21%, predict lower prices. The remaining 81, or 13%, were neutral on the precious metal’s near-term outlook.

The Fed's interest rate decision on Wednesday will be the most anticipated economic event of the week. According to the CME FedWatch Tool, the market sees a near 100% chance that the Fed will leave rates unchanged at 5.25% to 5.5%. At the same time, the Fed is expected to maintain restrictive monetary policy for the foreseeable future.

Kitco senior analyst Jim Wyckoff believes gold prices are likely to continue their upward trajectory this week. “Gold is holding steady and higher as the technical charts continue to show signs of optimism and safe-haven demand remains evident,” he said.

In the international market, gold price opened the trading week at around 2,001 USD/ounce.

Domestically, SJC gold price is currently at 70.15 - 70.97 million VND/tael (buy - sell). DOJI gold is priced at 70.10 - 70.82 million VND/tael (buy - sell). Jewelry gold price, 24K gold ring price of all kinds are traded around 58.75 million VND/tael for buying, 59.75 million VND/tael for selling.

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