However, that is only in the short term. Most experts still predict that gold is in an uptrend in the long term, possibly even reaching 10,000 USD/ounce (equivalent to 309 million VND/tael based on the exchange rate of 25,458 VND/USD at Vietcombank on April 27). .
Gold is forecast to continue to increase for a long time for many years in the context of the world being in an extremely unpredictable situation. The world financial market is unusual and unprecedented.
Accordingly, a huge amount of money has been pumped out by countries over the years, especially during the Covid-19 pandemic and post-pandemic period. Too much money has been pumped out, causing many types of assets to be suspected of falling into a bubble. The US economy is always on the brink of recession but the stock market is constantly increasing and continuously reaching peaks.
SJC gold price increased sharply. Photo: HH
Commodity prices increased abnormally, inflation increased to over 10% in the European region and over 9% in the US in mid-2022.
Money is even poured into many types of virtual assets, including digital currencies. The digital currency Bitcoin in mid-March set a historic record of 73,680 USD/BTC when money everywhere poured into Bitcoin ETFs.
What is worrying is that despite the money being pumped out, many countries’ economies are still sluggish. Many economies cannot absorb money. Production is said to be much slower than the amount of money put into circulation.
Besides, geopolitical instability is increasing everywhere. This is a factor that is expected to push gold – a storm shelter for world investors – to unpredictable heights in the coming years.
Ms. Schieven herself also raised her gold price target by the end of 2023 from the previously forecast level of 2,400 USD to 2,500 USD/ounce.
According to Ms. Schieven, the Fed will eventually have to cut interest rates this year. Low gold prices during the summer could be a good time for long-term investors to buy.
Previously, Mr. Scott Minerd, Chief Financial Officer of Guggenheim Partners financial services company based in New York, said the price of gold could be up to 5,000 USD/ounce, even 10,000 USD/ounce (equivalent to 309 million VND/ounce). quantity).
Accordingly, a representative of Guggenheim Partners, a company managing 270 billion USD, said that cash flow will leave some asset types, including digital currencies, and when people seek shelter to fight against the virus. Inflation, gold and silver will be no better place. Gold will enter a phase of exponential growth.
Previously, in mid-2021, on Kitco, Dan Oliver, founder of Myrmikan Capital, also said that the long-term forecast for gold is no longer 3,000 USD/ounce but the target is now 10,000 USD/ounce.
According to Dan Oliver, the Fed is taking on huge risks to prop up the US economy and gold will react accordingly, rising to a price that can balance the Fed’s balance sheet. And so the number associated with the price of gold will change dramatically, which according to Dan Oliver will be $10,000/ounce when the Fed’s assets collapse.
Dan Oliver emphasized that, once the Fed’s assets such as mortgage-backed securities or Treasury bonds… decrease in value, it will affect the USD, thereby having a positive impact on gold. .
