Reasons for the increase in gold prices

On February 4, the world gold price reached 2,838 USD/ounce. In Vietnam, the price of SJC gold bars also skyrocketed to 90.1 million VND/tael; while gold rings sometimes exceeded this mark. What is the reason for the skyrocketing gold price?

Sharing with VietNamNet reporter, Associate Professor Dr. Nguyen Huu Huan, Ho Chi Minh City University of Economics said that the world gold price is being affected by Donald Trump's policies, but psychological factors are more dominant.

Specifically, according to Mr. Huan, when Mr. Trump was elected, he announced that he would implement many policies; at that time, the price of gold decreased by more than 100 USD/ounce. But when Mr. Trump wanted to impose tariffs on Mexico, Canada and China, the price of gold increased, not decreased. Because the expectations of investors at those two times were different.

“Previously, they expected that imposing taxes to support domestic US businesses would strengthen the USD, promote the flow of money to the US, leading to an increase in US stocks and a strong increase in the USD. However, now these policies have raised concerns that US inflation will increase because the prices of domestic US goods have increased dramatically. When inflation returns, gold is a safe haven.

But on February 3, Mr. Trump “turned around” and did not impose tariffs on Mexico and Canada. It can be seen that US policies under President Trump are currently very unpredictable, while those policies have a huge impact on the market. Although the world gold price is on an upward trend, there was a time when it dropped sharply at the opening session, then recovered and increased by several dozen USD/ounce. Gold prices are fluctuating greatly and investors' psychology is currently very confused," Mr. Huan analyzed.

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Experts say that the price of domestic gold rings may increase more strongly than SJC gold bars. Photo: Minh Hien

According to this expert, the gold market has an upward trend but with great volatility. In the coming time, it is likely to continue like this until a new trend is found.

“Gold prices are at an all-time high, and thus, two opposing views have emerged. One side wants to sell to take profits, while the other wants to buy. These two views are still “tug of war” at the top, so it is not yet determined whether gold prices will continue to rise or just hover around this peak.

Domestically, from the 1st to the 10th of January - the God of Wealth's day - the demand for gold is the highest, so despite the decrease in world gold prices, domestic gold prices still increase. Especially when domestic supply is scarce due to the State Bank's policies on gold management and anti-smuggling," Mr. Huan added.

Regarding the increase in the price of gold rings, Associate Professor Dr. Nguyen Huu Huan also said that the possibility of gold ring prices increasing beyond SJC gold bars is possible. Because the price of gold rings depends on market supply and demand, it is not subject to strict management like SJC gold.

“The price of gold rings may be higher than the listed price of SJC gold bars, but the price of gold rings is very unlikely to be higher than the actual transaction price of SJC gold,” Mr. Huan commented.

Also stating that gold prices in 2025 will have great fluctuations, especially world gold prices, Dr. Nguyen Tri Hieu, an economic expert, pointed out that one of the main reasons pushing gold prices up is due to concerns about US President Donald Trump's tariff policies towards countries such as Mexico, Canada and China.

These policies have caused many investors to turn to gold as a safe haven amid turmoil in global financial markets.

“Domestic gold prices also depend on the world gold market and are now back to “fever” when world gold prices are rising and gold supply is lacking. In 2025, gold prices will continue to increase. SJC gold is being controlled by the State Bank’s price stabilization policy. But gold rings are likely to increase more strongly than gold bars,” Mr. Hieu commented.

However, according to Mr. Hieu, it is difficult to predict how much the gold price will increase.

Be careful investing in gold now

Mr. Huan said that if you want to buy gold for luck, you should only buy a small amount, about 1-2 taels. As for long-term investors, you should still keep gold if you have it.

“If you buy gold before Tet, you will have made a profit by now, but if you buy gold when the price is hot like now, it will be very risky. Therefore, people need to wait for the time when the gold price adjusts to buy, avoid chasing the market at the current stage,” Mr. Huan advised.

According to Dr. Nguyen Tri Hieu, investors should be careful when participating in the gold market at this time.

Gold is an investment channel that depends on factors such as geopolitics, and is considered by investors as a safe haven during crises or geopolitical fluctuations. However, Mr. Hieu said that both those who want to buy and sell gold need to consider carefully because the price of gold will continue to fluctuate.

“Sellers need to have a profit-taking point to sell; if they delay selling, the gold price can fall very quickly. As for those who want to buy gold, they need to have a time to decide to buy. Investing in gold requires financial discipline, but if you invest emotionally, it is easy to miss good opportunities to make a profit, while accepting risks,” said Mr. Hieu.

Gold price today February 4, 2025 skyrocketed over 90 million VND, SJC gold and rings exploded. Gold price today February 4, 2025 in the saliva SJC and gold rings in the early afternoon decreased by 300,000 VND according to world prices but were still at the peak, over 90 million VND/tael. Doji gold kept the same price of 90.6 million VND before the God of Wealth's day.