Gold prices hovered around the $2,340 mark on Wednesday and are up by nearly 14 points. It experienced a surge of 0.58% in the day’s trade and is looking to regain its lost ground in the charts. The precious metal is among the top-performing assets this year as it spiked by nearly 15% year-to-date. Retail investors, institutional funds, and central banks of developing countries have massively accumulated gold, eventually leading to its price hitting new highs.
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Gold Prices Could Start Declining Next, Predicts Vietnam’s Central Bank
However, the Central Bank of Vietnam has warned that gold prices could face corrections in the coming months. The bank expects gold prices to decline with volatility entering the charts. Vietnam’s central bank warned people to be extremely cautious before buying gold as they believe, the prices have peaked.
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“People need to be very cautious when buying gold as prices are highly volatile,” said Dao Xuan Tuan, the director of the central bank’s foreign exchange management department. The development indicates that central banks in Asian countries might begin to slow down on accumulating gold in their reserves.
The central banks of developing countries in Asia purchased the highest number of gold in their reserves since late 2022. China is the top buyer of gold and has more than 200 tonnes of the precious metal in reserves. Apart from China, the central banks of Russia, India, and South Africa, among others have been piling up their stocks.
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Read here for a realistic price prediction on how high gold prices could reach by the end of 2024. The precious metal is the third most-performing asset in the commodity market only behind silver and copper. Even the US dollar has surged by nearly 5% in the currency market year-to-date making it a promising investment.