High risk warning as gold prices fluctuate strongly

Individual customers buy SJC gold bars at Vietcombank Ho Chi Minh City Branch. Photo: Thanh Vu/VNA

Specifically, at Saigon Jewelry Company SJC, the listed price of gold bars is 112 - 114 million VND/tael (buy - sell), down 2 million VND/tael for buying and down 3 million VND/tael for selling compared to this afternoon's session (at 10:45 a.m.); down 5 million VND/tael for buying and down 6 million VND/tael for selling compared to yesterday's closing price.

Bao Tin Minh Chau Company listed the price of gold bars and gold rings at 111 - 114 million VND/tael (buy - sell), down 2.2 million VND/tael for buying and down 3 million VND/tael for selling compared to this afternoon's session; down 5.5 million VND/tael for both buying and selling compared to yesterday's closing price.

Phu Nhuan Jewelry Joint Stock Company listed the price of gold bars and gold rings at 109.5 - 113.5 million VND/tael (buy - sell), down 2.5 million VND/tael in both buying and selling compared to this afternoon's session; down 4.5 million VND/tael in buying and down 3.5 million VND/tael in selling compared to yesterday's closing price.

Saigon Jewelry Company (SJC) listed the price of gold rings at 109.5 - 113.5 million VND/tael (buy - sell), keeping the listed price unchanged in both buying and selling directions compared to this afternoon's session; down 3 million VND/tael in buying direction and down 3.5 million VND/tael in selling direction compared to yesterday's closing price.

Despite strong adjustments, domestic gold prices remain high. In response to the hot gold price developments, VNA reporters contacted a number of businesses, members of the Gold Business Association, and media contacts of gold businesses, but their phones were unreachable or they refused to answer when gold prices were hot and asked not to reveal their identities.

Experts, investors, as well as opinions on social networking sites and many forums, have actively sent out warning messages and recommendations about the risks of investing in the current gold peak with short-term investment expectations.

Ms. Chu Phuong, market and foreign exchange analyst at Giavang Net, said that there are a number of reasons pointed out for the recent sudden increase in gold prices.

It is economic uncertainty, it is the uncertainty about the global economic outlook due to the trade war that has driven demand for safe assets like gold. Second is inflation, if the trade war leads to inflation, gold can be seen as a hedge against currency depreciation, driving up demand and prices.

Add to that the tendency for currency volatility. Trade wars can cause currency volatility, making gold an attractive option for portfolio diversification. Finally, interest rates. Central banks can cut interest rates to counter the negative impact of trade wars, reducing the opportunity cost of holding non-yielding gold, which could boost the price of gold.

In this context, gold often benefits as investors seek safety and preserve the value of their assets. However, it is important to note that gold prices are also affected by many other factors, including interest rates, monetary policy, and geopolitical events. Therefore, it is important to conduct a thorough and comprehensive analysis before making any investment decisions in gold to avoid risks.

Following the technical chart, expert Nguyen Dinh Duc, General Director of Babylons Group - a business specializing in training on gold investment and trading and managing the gold exchange, said that through historical research, gold has been considered a safe haven investment channel for thousands of years in the face of fluctuations. Therefore, in the context of many fluctuations and instabilities caused by the trade war, it is not surprising that gold prices may continue to rise in the near future.

Further analysis, according to BACC Trading, Vietnam's gold price does not only react to the world gold price but is also affected by the FOMO psychology (anxiety or obsession about missing out on opportunities or experiences that others have had). People have the mentality of seeing everyone else buying so they also want to rush to buy gold because they are afraid of losing the opportunity when the gold price will increase further, especially when they see the big difference between the international and domestic gold prices.

Faced with this reality, experts warn that when the market is experiencing great fluctuations, buying gold at this time is extremely risky. Investors should limit selling and only wait to buy at the resistance zone where the price will return or staying outside is also a wise choice.

Talking to long-time investor Nguyen Thi Luan, in Hai Ba Trung, Hanoi, she said she is very interested in accumulating assets. However, she implements a risk allocation strategy, investing in gold, stocks and savings instead of "putting all eggs in one basket".

According to Ms. Luan, investing in gold at this time has a very high risk of hitting the peak because the market is currently fluctuating greatly. Investors should limit risks and calmly observe market developments to make the right decision.

According to VNA

Source: https://baodanang.vn/kinhte/202504/canh-bao-rui-ro-cao-khi-gia-vang-bien-dong-manh-4004811/