In recent weeks, the gold market in Vietnam has witnessed a remarkable surge, with prices reaching unprecedented levels. This article delves into the factors driving this increase, the current market dynamics, and the implications for investors and consumers alike.
Record Highs in Gold Prices
On Saturday, SJC gold bars were sold at VND138.6 million ($5,253) per tael, with a buying price of VND136.6 million ($5,177). This marked an increase of VND800,000 ($30) from the previous day, setting a new record in the domestic market. Such fluctuations highlight the volatility and attractiveness of gold as an investment, particularly in times of economic uncertainty.
Gold rings made of 9999 fine gold also saw a price increase, selling at VND135 million ($5,116) per tael, up VND700,000 ($26.5), while the buying price reached VND132.3 million ($5,014). The narrowing spread between buying and selling prices at major gold retailers, now around VND1 million ($38) per tael, indicates a competitive market responding to heightened demand.
Global Influences on Local Prices
The surge in Vietnam’s gold prices is closely tied to global market trends. As of the end of last week, global spot gold prices stood at $3,887 per ounce, up $29.6. This increase is largely driven by expectations of interest rate cuts by the U.S. Federal Reserve, alongside sustained demand from central banks and exchange-traded funds (ETFs).
Currently, the international gold price translates to approximately VND123.8 million ($4,692) per tael, placing local SJC gold at a premium of around VND14.8 million ($561). This premium reflects the strong demand for gold in Vietnam, which continues to outpace supply.
Factors Driving Demand in Vietnam
Vietnam’s domestic gold demand remains robust, with traders anticipating additional supply after October 10. The market’s appetite for gold is fueled by several factors, including a weakening U.S. dollar, political uncertainties surrounding a potential extended government shutdown, and rising expectations of monetary easing by the Federal Reserve.
Investor sentiment has been notably bullish, with markets pricing in a 97-percent chance of a rate cut this month and an 85-percent chance of another cut by year-end, according to CME’s FedWatch Tool. Such expectations often lead investors to seek safe-haven assets like gold, further driving up prices.
The Performance of Gold as an Asset
Gold has gained an impressive 47 percent so far this year, positioning it as one of the strongest-performing assets globally in 2025. This performance is indicative of gold’s traditional role as a hedge against inflation and economic instability. As investors navigate uncertain economic waters, gold remains a favored choice for wealth preservation.
However, it is worth noting that despite the overall bullish sentiment, the SPDR Gold Trust, the world’s largest gold ETF, recorded a net outflow of 0.8 tonnes on Friday, reducing its holdings to 1,014.9 tonnes. Nonetheless, the fund added about eight tonnes for the week, suggesting a complex interplay between inflows and outflows in the gold market.
Conclusion
The recent surge in gold prices in Vietnam reflects a confluence of local demand and global market dynamics. As prices reach record highs, investors and consumers alike are keenly observing the market for further developments. With expectations of interest rate cuts and ongoing geopolitical uncertainties, gold is likely to remain a focal point for investment strategies in the coming months. As the market awaits additional supply, the allure of gold as a safe-haven asset continues to shine brightly.