Will gold price 'collapse' to 90 million VND/tael?

According to expert Nguyen Tri Hieu, this possibility is unlikely to happen.

“In the period 2009 - 2011, the price of gold fluctuated violently when it skyrocketed from 19 million VND/tael to 49 million VND/tael. At the end of 2011, the price began to decrease sharply, and throughout the period 2012 - 2018, it hovered around 34 - 36 million VND/tael. Notably, the price hit bottom at 32.45 million VND/tael at the end of 2015. However, this time the price of gold will not "collapse" as sharply," said Mr. Hieu.

Experts predict that gold prices may continue to increase, but investors should still be cautious. (Illustration photo).

Explaining the basis of the above prediction, Dr. Nguyen Tri Hieu said:

The main reason is that the world gold price is still on the rise due to geopolitical instability and unpredictable political developments in the US. Therefore, not only Vietnam but also investors around the world are "running to gold" and considering it a safe haven.

In addition, USD interest rates are expected to fall further this year.

“The above factors will cause the world gold price to continue to increase in the coming time and the decline in recent days is only temporary. The gold price is in the process of accumulation and consolidation, with growth prospects if economic risks continue to persist. The world gold price may reach 3,100 USD/ounce.

This development will directly impact the gold price in Vietnam. Therefore, it will be very difficult for the gold price to “collapse” like a few years ago,” Mr. Hieu said.

Sharing the same view, economic expert Associate Professor Dr. Ngo Tri Long said that last week, gold prices fluctuated erratically.

However, the world situation still has many potential risks and uncertainties, causing investors to focus on gold as a safe haven. In addition, central banks and hedge funds around the world are strongly tending to accumulate gold. Therefore, the world gold price will continue to increase in the coming time, especially in the next 3-6 months. Domestic gold prices will continue to increase accordingly.

Expert Ngo Tri Long also said that gold is considered a safe investment during times of inflation or economic volatility, has increased by more than 15% since the beginning of the year and recorded an increase of about 37% since March last year.

"This increase reflects the combination of falling interest rates and a strategic shift in capital flows to gold-based assets. The price of this precious metal could reach $3,200/ounce between now and the end of the year," Mr. Long predicted.

Although they believe that gold prices will continue to rise in the coming time, both experts advise investors to absolutely not borrow money to buy gold because gold prices can reverse unexpectedly, causing huge losses. The proportion of gold in the ideal investment portfolio should only be at 10-20%, avoiding the situation of betting entirely on this precious metal.

Early morning of March 26, SJC listed the price of gold bars at 95.9 - 97.9 million VND/tael (buy - sell). The price of gold rings at Doji was listed at 96.1 - 98.7 million VND/tael.

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