How will recent fluctuations in world gold prices impact the Vietnamese gold market in 2025?
Gold prices continue to skyrocket
In the first months of 2025, gold prices continued to skyrocket. So how will recent fluctuations in world gold prices impact the Vietnamese gold market in 2025?
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| Mr. Shaokai Fan, Regional Director for Asia-Pacific (excluding China) and Global Head of Central Banks at the World Gold Council (WGC) |
Sharing with reporters of Cong Thuong Newspaper on this issue, Mr. Shaokai Fan, Director of Asia-Pacific region (excluding China) and Director of Global Central Banks at the World Gold Council, said that gold prices in early 2025 increased significantly, reaching an all-time high.
As in previous periods, macroeconomic factors such as inflation concerns and the direction of monetary policy have anchored gold prices at high levels. This time, geopolitical concerns and uncertainty related to US tariff policy have also contributed to the appeal of gold.
"In Vietnam, while rising gold prices may reduce demand for gold jewelry, demand for gold as an investment may continue to increase with the desire to protect against inflation and market instability," said Mr. Shaokai Fan.
According to Mr. Shaokai Fan, the US tax policy has had a direct impact on the global gold market, increasing investors' interest in gold to hedge against risks in the context of instability.
These tariffs affect the global economy through increased inflationary pressures, which could also lead to increased demand for gold as a hedge against risk.
China may increase its gold purchases as a safe haven asset. For Vietnam, the impact of US tariffs could continue to weigh on gold prices, while potentially disrupting the movement of gold as price volatility impacts domestic supply chains.
"The tariff-induced volatility in global markets and trade has boosted demand for gold, prompting institutional investors and individuals to seek gold as a hedge against risk," said Shaokai Fan.
This expert also analyzed that in early 2025, the gold futures price on the COMEX (New York Commodity Exchange) floor began to differ from the gold price in London, due to a significant increase in demand for physical gold in the US due to concerns about potential tariffs.
This created a price arbitrage between the US and global gold markets, and attracted a large amount of physical gold to the US. While this has now subsided, concerns remain about the impact of tariffs on existing gold supplies in the US.
In addition, fluctuations in the US exchange rate and government bond yields play an important role in gold prices. A weaker US dollar is a key factor affecting gold's performance, along with rising geopolitical risks and interest rate cuts.
A weaker dollar, whether due to lower interest rates or policy uncertainty, makes gold more attractive to investors as a store of value. A weaker dollar and lower bond yields are generally positive for gold prices.
What drives gold prices higher?
US tariff policy has increased the appeal of gold, due to the potential for inflationary pressures and increased global uncertainty. In such environments, investors often seek gold as a hedge against risk, although this may come with the risk of short-term price volatility.
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| Gold market - Illustration photo |
Overall, although the tariff policy has boosted gold prices, the tax has also contributed to market volatility, so investors need to monitor the situation closely to manage the associated risks.
Uncertainty caused by US tariff policies could also boost gold demand in Vietnam. In uncertain economic conditions, gold is often considered a safe haven asset.
Gold holds a special place and importance in Vietnamese culture, and domestic demand for gold is likely to continue to increase as consumers seek stability amid global economic volatility.
“This behavior is consistent with global trends where geopolitical and economic uncertainties increase demand for gold as a stable asset,” said Shaokai Fan.
What advice would you give to investors in the gold market in the face of the impact of US tariffs? Gold can play a role in many portfolios as a way to hedge against uncertainty and improve asset diversification, said Shaokai Fan, adding that gold has long performed well during periods of uncertainty.
In today's uncertain global environment, the World Gold Council believes that all investors should consider the value that gold can add to their portfolio.
In addition, Mr. Shaokai Fan also informed that the rise of gold ETFs in 2024, with inflows reaching $9.4 billion in February 2025, shows great interest from investors. Gold ETFs have made an impressive comeback in 2024, and this trend may continue in 2025, due to falling interest rates, market volatility and continued concerns about policy direction.
| According to Mr. Shaokai Fan, Director of Asia-Pacific (excluding China) and Director of Global Central Banks at the World Gold Council: Gold is a globally traded asset, the price of gold is determined by events and economic forces around the world. Vietnamese investors should carefully study the factors affecting gold prices and evaluate which type of gold-related financial instrument is most suitable for them. |
Source: https://congthuong.vn/bien-dong-cua-gia-vang-the-gioi-tac-dong-the-nao-den-viet-nam-378924.html
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