Gold Prices Rebound Strongly

After a brief drop over the weekend, gold prices have made a significant comeback. The Saigon Jewelry Company reported a 3.5% increase in gold bar prices, reaching VND118 million (US$4,561.27) per tael. This recovery follows a peak of VND120 million per tael last Friday, which had dipped to VND115 million during the weekend.

Global Gold Market Trends

On the global stage, gold prices surged to a record high on Monday. This rally was fueled by growing concerns over global economic growth, exacerbated by the ongoing Sino-U.S. trade war. A weaker dollar has further enhanced gold's appeal, with spot gold advancing 1.7% to $3,383.87 an ounce, and U.S. gold futures firming 2% to $3,396.10.

Economic and Political Factors

The dollar index hitting a three-year low has made gold more attractive to holders of other currencies. Meanwhile, geopolitical tensions and stagflation concerns are driving market dynamics. China's warning against countries forming broader economic deals with the U.S. at its expense adds another layer of complexity to the global economic landscape.

Future Outlook

Market strategists suggest that the next potential milestone for gold could be around the $3,500 level. However, they caution that the market may appear crowded in the near term, with technical indicators pointing to overbought conditions.