Gold price hits record high: Still need to be cautious

Experts say people need to be careful to avoid risks, because gold prices can increase sharply but also decrease rapidly.

Continuously surpassing new records

People buy gold at a store on Tran Nhan Tong Street (Hai Ba Trung District). Photo: Tuan Son

Never before has the domestic gold price increased continuously and strongly as in the past time. Looking back at the market from the beginning of the year until now, the price of precious metals has almost always been increasing. From 82.2 million VND/tael (buy) - 84.2 million VND/tael (sell) at the end of 2024, the price of SJC gold bars has continuously increased. In particular, after the Lunar New Year holiday, in early February 2025, close to the God of Wealth's day (January 10), the domestic gold price rose above 91 million VND/tael because many people bought gold at the beginning of the year as well as on the occasion of the God of Wealth's day to pray for luck and the world gold price also continuously increased, at times reaching a record of 2,850 USD/ounce.

Notably, in March 2025, the gold price fluctuated violently, continuously breaking the record levels of 93, 94 and 95 million VND/tael, then surpassing the 100 million VND/tael mark on March 20 (100.1 million VND/tael). After reaching the above record level, the gold price cooled down to 94.9 million VND/tael (buy) - 97.4 million VND/tael (sell). However, on March 28, the gold price skyrocketed to a new record level of 98.7 million VND/tael (buy) - 100.7 million VND/tael (sell). By the last day of March, the gold price reached a historical peak of 99.5 million VND/tael (buy) - 101.8 million VND/tael (sell).

Thus, in March 2025 alone, the price of SJC gold bars "increased" to 11 million VND/tael. Not stopping there, in early April 2025, the price of gold continued to increase. On the morning of April 1, the price of this precious metal increased to an all-time high of 100.3 million VND/tael (buy) - 102.6 million VND/tael (sell) and then decreased to 99.4 million VND/tael (buy) - 102.1 million VND/tael (sell) at the end of the day. By April 2, the price of gold fell below the 102 million VND/tael mark, at nearly 4:00 p.m., it was trading at 99.1 million VND/tael (buy) - 101.8 million VND/tael (sell). Compared to the end of 2024, the price of gold bars increased by nearly 18 million VND/tael.

The price of gold rings also fluctuated similarly. If at the end of 2024, the common price of gold rings was 83.4 million VND/tael (buy) - 84.2 million VND/tael (sell), then on April 2 it was 99.2 million VND/tael (buy) - 101.9 million VND/tael (sell).

Regarding the sharp increase in the domestic gold market, according to experts, the main reason comes from the international market. Recently, the world gold price has continuously increased and has exceeded the 3,000 USD/ounce mark, then far exceeded the 3,100 USD/ounce mark due to economic instability. The US tariff policy may increase concerns about a global trade war. The imposition of tariffs will cause commodity prices to increase, pushing up the risk of global inflation. In addition, geopolitical tensions and economic instability have caused many investment funds, central banks, and investors to increase their gold purchases to secure their assets, leading to a sharp increase in global gold demand.

In addition to the influence of the international market, the sharp increase in domestic gold prices is also due to increased domestic demand and limited supply. Gold prices are continuously rising, many people are anxious to buy gold. In fact, recently, the State Bank has implemented many solutions to help domestic gold prices get closer to world gold prices. However, the gap between supply and demand is still very large. In recent days, the gold market has become bustling again, the situation of people lining up to get numbers to buy gold has recurred.

Gold prices are likely to fall.

Customers buy gold at DOJI jewelry center. Photo: DOJI

Faced with the "dancing" situation of gold prices and people rushing to buy gold, Dr. Nguyen Tri Hieu said that every time the domestic gold price increases sharply, gold trading companies often widen the buying and selling margin, pushing the risk to the buyer. "In fact, those who have accumulated gold in the past now have very good profits from gold. But on the contrary, investing in a quick-fix, "surfing" style is very dangerous because the gold market fluctuates unpredictably. When the gold price goes up, there will be a phenomenon of investors selling gold to take profits and thereby pushing the gold price down. In particular, people should not borrow money to invest in gold because they can easily suffer losses, because investing in gold safely requires monitoring the gold market regularly, both the domestic and world markets" - this expert emphasized.

Vice President of the Vietnam Gold Trading Association Huynh Trung Khanh advised that if people do not have gold in their investment portfolio and have long-term investment needs, they can buy. If they only buy because of the crowd mentality, buying to "surf", they should not because they will encounter risks, because the price of no commodity can increase forever. The world gold price has increased sharply but at some point it will decrease due to profit-taking pressure.

Forecasting the price of gold in the coming time, some experts believe that in the near future, the price of gold will likely decrease. Expert Tran Duy Phuong said that the price of gold has increased very strongly in the past time, from the beginning of February 2025 until now, the price of gold has increased by nearly 400 USD/ounce. The market has likely "absorbed" the news about tariffs, so there is not much room for further increase in the price of gold. In April and May 2025, the price of gold may decrease to 2,800-2,900 USD/ounce, because investors take profits; many countries will negotiate with the US to reduce taxes, so trade tensions will cool down. In addition, geopolitical tensions are also being actively negotiated by the parties. Another important factor is that in recent years, the end of April and May have often been gloomy times for world gold prices. After that time, the development of the price of gold will depend on the economic and geopolitical situation.

Source: https://baotuyenquang.com.vn/gia-vang-len-muc-ky-lucvan-rat-can-than-trong-209452.html