Experts warn that gold prices could fall sharply at any time.

-The domestic gold price today has increased dramatically like never before. What is the reason, sir?

- It can be said that April 16 marked a huge jump in gold prices, surprising many people and professional investors. The price of SJC gold bars increased by 7.5 million VND/tael in just one day, to 115.5 million VND/tael, the highest level ever.

Domestic gold prices increased sharply due to a combination of factors between the international market and domestic psychology.

Expert Nguyen Quang Huy, Executive Director of the Faculty of Finance and Banking, Nguyen Trai University. Photo: NVCC

In the international market, gold prices reached an all-time high, surpassing the 3,300 USD/ounce mark due to many factors, such as political tensions raising concerns about spreading into global conflicts; the risk of economic recession in some major economies, especially Europe and Japan.

Central banks in many countries continue to buy gold to hedge against systemic risks and reduce dependence on the USD; trade tensions between the US and major economies over tariffs increase global economic instability.

In the above context, gold has become the leading safe haven asset, strongly sought after by investors, financial institutions and even governments .

In the domestic market, the gap between supply and demand, combined with the "crowd" mentality, has pushed gold prices skyrocketing. It is noteworthy that today, the gap between domestic and world gold prices is very wide, reaching more than 11 million VND/tael, while in recent days it was only over 6 million VND/tael, and at times it was only 5 million VND/tael. This shows that domestic gold prices are increasing faster than world prices because demand is increasing but supply is not enough to meet it.

In fact, in recent days, when the price of gold increased sharply, people lined up to buy gold because they were afraid that the price would increase further. The fear of missing out on the opportunity caused many people to rush to buy gold during the period of sharp price increase, unintentionally adding fuel to the wave of gold price increase.

-So how much more will the gold price increase, sir?

-In my opinion, international gold prices may fluctuate in an upward trend if geopolitical tensions continue to escalate or unexpected events occur; the global economic situation weakens more clearly, forcing countries to "pump" money to support the economy and loosen monetary policies; confidence in the financial system and fiat money declines, causing investors to seek gold as an asset to preserve value.

How much the price will increase is very difficult, because the level of over 3,300 USD/ounce of world gold and 115.5 million VND/tael of domestic gold are levels that few people thought of at the beginning of this year.

Gold price increased by 7-8 million VND/tael on April 16. Photo: HT

However, it is important to emphasize that the gold market never goes in a straight line, or in other words, gold cannot keep increasing forever. Prices can increase sharply in the short term, but can also easily adjust when market sentiment changes; regulatory policies intervene to stabilize prices; and profit-taking pressure increases from international financial institutions. Therefore, gold prices can reverse and decrease sharply at any time.

-What advice do you have for people in the current context of strong fluctuations in gold prices?

- Gold is still a good long-term asset to protect value, but only suitable for those with a clear vision and investment strategy. At the present time, when gold is continuously reaching new peaks, people need to be alert and not let emotions and crowds guide their financial decisions.

Invest with knowledge and strong belief, not with short-term psychology or the expectation that “prices will never fall”. Gold prices can reverse at any time. Therefore, people need to be calm, observe market developments carefully and not follow the crowd mentality.

Thank you very much!

By the end of the afternoon of April 16, the price of SJC gold bars was listed by businesses at 113 million VND/tael (buy) -115.5 million VND/tael (sell), an increase of 7.5 million VND/tael each way compared to the end of April 15.

The price of gold rings also increased sharply. Saigon Jewelry Company Limited listed gold rings of type 1-5 at only 110.5 million VND/tael (buy) - 113.5 million VND/tael (sell), also increasing by 7.5 million VND/tael each way.

112 million VND/tael (buy) - 115 million VND/tael (sell) is the listed price of gold rings by Bao Tin Minh Chau Company Limited, compared to 104.1 million VND/tael (buy) - 107 million VND/tael (sell) at the end of April 15, an increase of 7.9 million VND/tael and 8 million VND/tael, respectively.

Source: https://hanoimoi.vn/chuyen-gia-canh-bao-gia-vang-co-the-giam-manh-bat-cu-luc-nao-699197.html