Around 6 o’clock on February 23, the world gold price traded at 1,811 USD / ounce, a sharp increase of 26 USD / ounce compared with the previous opening price of 1,785 USD / ounce.
Previously, the price of SJC gold in Vietnam also increased sharply by 250,000 VND / tael, from 56.05 million VND / tael to 56.3 million VND / tael, 6 million VND / tael higher than the world price.
Gold price increased dramatically when the USD weakened against many other strong currencies, the market was flooded with buyers.
On the other hand, the price of crude oil soared to 61 USD / barrel pushed gold prices up. Because, gold and crude oil are two goods that are price-positive. When the price of crude oil increases, the price of gold usually goes up.
Meanwhile, Bloomberg reported that Goldman Sachs Bank (USA) forecasted crude oil price would skyrocket to 70 USD / barrel in the second quarter of 2021 due to a sharp increase in global energy consumption amid the number of Covid-19 cases. the vaccination is getting better, the vaccination efficiency is getting better, the epidemic has been gradually controlled, the socio-economic activities in the world have gradually recovered. Especially when the UK is considering lifting its epidemic blockade measures, preliminary data from Israel shows that the Pfizer-BioNTech vaccine prevented almost 90% of Covid-19 infections.
This information probably caused financial investors to stop investing in bonds and stocks, causing US government bond interest rates to drop sharply; stock markets in Europe, Japan, Korea, and America were almost in the red. So money flows strongly into the commodity market. Gold price increased motivation to go up.
Transactions on the gold market showed that at the beginning of February 22nd, investors bought in strongly. Gold prices rebounded by 15 USD / ounce, reaching 1,800 USD / ounce. Next, when the price of crude oil soared and the US bond interest rate fell, global stocks lost points, the gold market was almost empty of sellers. Therefore, the price of gold soared to 1,813 USD / ounce. After that, the price of gold went sideways and by the beginning of February 23, it was traded at 1,811 USD / ounce