World Gold Council: Vietnam gold price may fluctuate strongly due to market restrictions

ANTD.VN - Experts from the World Gold Council (WGC) said that restrictions applied to the gold market in Vietnam could cause greater fluctuations in domestic gold prices compared to international markets.

This is the view expressed by Mr. Shaokai Fan, Director of Asia-Pacific region (excluding China) and Director of Global Central Banks at the World Gold Council when sharing with the press recently.

Mr. Shaokai Fan

PV: Sir, in the first months of 2025, gold prices continued to increase rapidly . How does the World Gold Council assess this growth rate? How will recent fluctuations in world gold prices impact the Vietnamese gold market in 2025?

Mr. Shaokai Fan : Gold prices have increased significantly in early 2025, reaching an all-time high. As in previous periods, macroeconomic factors such as inflation concerns and the direction of monetary policy have anchored gold prices at high levels. This time, in addition to geopolitical concerns and uncertainties related to US tariff policies, gold's attractiveness has also increased.

In Vietnam, while rising gold prices may reduce demand for gold jewelry, demand for gold as an investment may continue to increase with the desire to protect against inflation and market volatility.

PV: In your opinion, how will the US tax policy affect the global gold market in general and Vietnam in particular ?

Mr. Shaokai Fan : The US tax policy has had a direct impact on the global gold market, increasing investors' interest in gold as a hedge against risks in the context of instability. These tariffs affect the global economy through increasing inflationary pressures, which can also lead to increased demand for gold as a means of asset protection and risk hedging.

China may increase its gold purchases as a safe haven asset. For Vietnam, the impact of US tariffs could continue to weigh on gold prices, potentially disrupting the movement of gold as price volatility impacts domestic supply chains.

PV: Do you observe any specific trends or patterns in gold trading in response to US tariff policy?

Mr. Shaokai Fan : In early 2025, the gold futures price on the COMEX (New York Mercantile Exchange) floor began to diverge from the gold price in London, due to a significant increase in physical gold demand in the US due to concerns about potential tariffs.

This created a price arbitrage between the US and global gold markets, and attracted a large amount of physical gold to the US. While this has now subsided, concerns remain about the impact of tariffs on existing gold supplies in the US.

The movement of physical gold into the US has affected gold supply in other markets, although the size and depth of the global gold market is still capable of meeting demand. However, with continued policy uncertainty around the globe, the risk of supply chain disruption is something investors should consider.

In addition, the rise of gold ETFs in 2024, with inflows reaching $9.4 billion in February 2025, shows strong investor interest. Gold ETFs have made an impressive comeback in 2024, and this trend could continue in 2025, due to falling interest rates, market volatility, and continued concerns about policy direction.

PV: Could the instability caused by tax policy lead to increased demand for gold as a safe haven asset in Vietnam, similar to the global trend , sir ?

Mr. Shaokai Fan : Gold has a special and important place in Vietnamese culture, and it is likely that domestic gold demand will continue to increase as consumers seek stability in the face of global economic volatility. This behavior is similar to global trends, where geopolitical and economic uncertainties increase demand for gold as a stable asset.

The global gold supply dynamics could be affected by potential tariffs, leading to disruptions in some local markets. Restrictions on the gold market in Vietnam could cause greater volatility in domestic gold prices than in international markets.

Vietnam is considering further liberalizing its gold market by increasing import quotas. This could allow for greater gold supply to the domestic market, especially during periods of high demand due to global uncertainty.

PV: What advice would you give to investors in the gold market in the face of the impact of US tariffs?

Mr. Shaokai Fan : Gold can play a role in many investment portfolios as a way to hedge against uncertainty and improve asset diversification. In today's uncertain global environment, the World Gold Council believes that all investors should consider the value that gold can add to their portfolios.

Vietnamese investors should carefully study the factors that affect gold prices and evaluate which type of gold-related financial instrument is most suitable for them.

PV: Thank you!

Source: https://www.anninhthudo.vn/hoi-dong-vang-the-gioi-gia-vang-viet-nam-co-the-bien-dong-manh-do-nhung-han-che-tren-thi-truong-post606486.antd