World gold price has just officially surpassed the record mark of 3,800 USD/ounce and is currently trading around 3,804 USD/ounce.

Kitco News’ weekly survey shows Wall Street analysts are at a record high, retail investors are also more positive.

Gold remains in a long-term uptrend against most currencies, said Colin Cieszynski, chief strategist at SIA Wealth Management.

“Despite some talk of gold being overbought, the trend remains positive. Central banks have not slowed down, while retail investors have also started to join in,” said Rich Checkan, president and CEO of Asset Strategies International, in the report.

Adrian Day, chairman of Adrian Day Asset Management, noted that changes in the U.S. economy are affecting interest rate expectations. However, he said the more important factor is the shift away from the dollar as a global reserve asset, which is driving demand for gold.

World gold prices skyrocketed, surpassing the record mark of 3,800 USD/ounce (Photo: Kitco).USD/ounce (Ảnh: Kitco).

Kevin Grady, president of Phoenix Futures and Options, said gold is benefiting from a weaker dollar and expectations that the US Federal Reserve (Fed) will soon cut interest rates. He said the $4,000/ounce mark is very close and emphasized the strong role of central banks in buying gold as they are gradually considering this as a national security issue.

“I think gold prices will continue to rise because the world continues to look for an alternative asset to the US dollar,” Chris Mancini, portfolio manager at investment firm Gabelli Funds, told Kitco News.

However, Mr. Fawad Razaqzada, an analyst at City Index, said that the gold price’s rise could only be affected if there was a major shift in interest rate expectations.

“Gold prices have been supported by strong and continuous buying by central banks, due to concerns about US public debt and persistent inflation. These factors, along with high investment demand for gold, will continue to support gold prices,” Mr. Razaqzada commented in the report.

Last week, the US Commerce Department announced that the personal consumption expenditures (PCE) price index increased 0.3% compared to the previous month, bringing the annual headline inflation rate to 2.7% .

Excluding food and energy, the core PCE price index rose 2.9% year-over-year, after rising 0.2% in the month. Annual headline inflation edged up from 2.6% in July, while core inflation remained unchanged.

Meanwhile, personal spending and income were both higher than forecasts. Specifically, personal income increased 0.4% in the month, while personal consumption expenditure increased 0.6%. Both indexes were 0.1% higher than the previous estimate.

According to the CME FedWatch tool, the market is pricing in an 88% chance of the Fed cutting interest rates in October and a 65% chance of another cut in December.

This week, attention will be focused on a series of US economic data such as home sales, employment, consumer confidence… Observers consider this a key indicator for expectations of a Fed rate cut in October, while continuing to test the strength of gold in the current uptrend.