Gold prices today, August 8, 2024, fell sharply then unexpectedly surged.

As of 8:10 PM on August 7th (Vietnam time), the spot price of gold on the world market was $2,404 per ounce. Gold futures for December 2024 on the Comex New York exchange were at $2,448 per ounce.

World gold prices on the night of August 7th were approximately 16.5% higher (US$341/ounce) than at the end of 2023. World gold prices, converted using the bank's USD exchange rate, were VND 74.1 million/ounce, including taxes and fees, which is about VND 4.9 million/ounce lower than domestic gold prices as of the end of the afternoon trading session on August 7th.

Global gold prices plummeted before unexpectedly rebounding despite a relatively strong US dollar. Money is flowing into safe-haven investments as global stock markets fluctuate.

Global gold prices fell sharply, at one point dropping to as low as $2,380 per ounce, amidst declines in most other assets, including stocks, bitcoin, the US dollar, and oil. Investors were reportedly forced to sell gold to offset losses.

However, demand for precious metals has rebounded as geopolitical tensions escalate in the Middle East.

Investors are holding their breath over the "powder keg" of the Middle East, as the possibility of war could erupt in the region following the assassination of Hamas political leader Ismail Haniyeh in Iran.

The whole world is watching the response from Iran and Tehran's proxies. Israel now faces threats of retaliation not only from Iran, but also from Iranian-backed groups such as Hezbollah in Lebanon and the Houthi in Yemen.

A large-scale conflict could break out in the Middle East.

Money is flowing into low-risk assets, including the USD and gold. This is why gold is rising in price despite the US dollar also strengthening significantly.

The DXY index – which measures the fluctuations of the US dollar against a basket of six major world currencies – rose nearly 0.2% at the opening of the August 7th session (New York market) to 103.2 points after falling to 102.5 points at the same time in the previous session.

However, it can be seen that, compared to the 105 points in July, the index is still on a downward trend.

Gold price forecast

Gold is projected to continue benefiting from geopolitical uncertainties in international markets as well as a potential long-term downtrend in the US dollar.

Recently, the US released some data showing that its labor market is quite weak. Overall, the US economy remains positive, but the likelihood of the Fed cutting interest rates to avoid a recession is very high.

Gold is also supported by demand from major global players, including central banks and gold ETFs.

The fact that gold has repeatedly reclaimed the $2,400/ounce mark demonstrates this.

An uncertain world could push precious metals higher, even though they have already risen sharply since the end of 2023.

Gold, stocks, USD, and Bitcoin all plummet: The strangest thing happening . The market is witnessing a rare phenomenon where most asset classes are falling, stock exchanges are collapsing, the USD is sharply declining, and gold prices are plummeting... This development contradicts the usual pattern: when the USD rises, gold falls, and vice versa.