What causes gold prices to continuously increase...

Gold prices continue to hit new highs

In recent days, the price of SJC gold bars has surpassed the peak of 120 million VND/tael for sale and is likely to continue to increase in the coming time. In just two days, the price of gold has increased by 10 - 12 million VND/tael. Despite the continuous increase in gold prices with no end in sight, many people are still preparing large sums of money to "buy" gold at the peak.

Accordingly, on April 17, before the store opened, many people lined up in front of the headquarters of Saigon Jewelry Company Limited - SJC (District 3, Ho Chi Minh City) waiting to buy gold. By 10 am, security had to turn away some customers or advise them to come back in the early afternoon because inside, the number of customers waiting to buy gold was very large. Some people even waited for more than an hour without being called to buy gold.

On the morning of April 17, SJC gold price increased by 3 million VND/tael for buying and 2.5 million VND/tael for selling, listed at 115.5 million VND/tael for buying and 118 million VND/tael for selling.

People lined up to buy gold when the price increased to 120 million VND/tael on April 17. Photo: UP

Sharing with the press, Mr. Nguyen Tri Hieu, a banking and finance expert, said that gold surpassing 120 million VND/tael is unprecedented, but in fact it has been achieved and is likely to continue. According to Mr. Hieu, fluctuations in the global financial market have pushed the world gold price to a new record high, causing domestic gold prices to increase sharply. In fact, this precious metal still has room to increase further as the list of safe haven assets is increasingly narrowing. "In the context of tariff tensions that have not cooled down, investors will seek gold as a refuge from global trade tensions," said Mr. Hieu.

Should we buy or sell gold now? Mr. Hieu said that people and gold investors should set a certain profit target of about 30%, which is reasonable. In the case of holding gold to a profit of about 30%, we can think about taking profit to preserve profits. Or if we want to buy gold now, we need to consider whether there is still much room for price increase or not. We should not follow the trend and not worry too much when seeing the price of gold go up and down, the important thing is to have a strategy and profit target. I always say that "we should not put all our eggs in one basket", in addition to gold, we can diversify investment channels into stocks and put some money in the bank" - Mr. Hieu recommended.

What is the cause?

In response to the request of the National Assembly's Economic and Financial Committee, the State Bank of Vietnam (SBV) has just issued a supplementary assessment report on the results of the implementation of the 2024 Socio-Economic Development Plan; the implementation of the Socio-Economic Development Plan and banking activities in the first months of 2025.

Regarding the gold market, the State Bank of Vietnam said that thanks to a series of solutions, by the end of 2024, the difference between domestic and world gold prices had been controlled and maintained at a suitable range. Accordingly, the difference between world gold prices and domestic gold prices converted from 25% at the peak (VND 18 million/tael - PV) to about VND 3-5 million/tael (equivalent to about 5-7%) by the end of 2024.

In the first quarter of 2025, the world gold price continuously broke the previous record, increasing from 2,635 USD/oz (January 2, 2025) to the highest level of 3,047 USD/oz on March 19, 2025.

According to the State Bank, the high gold price is a common trend in both international and domestic markets.

The State Bank pointed out 3 reasons for the increase in international gold prices:

Firstly, political instability, military conflicts, and strategic competition are increasing globally, such as the prolonged Russia-Ukraine military conflict, followed by economic and political sanctions and retaliation between Russia and the US and its allies; and military conflicts between Israel and Muslim countries and forces in the Middle East.

Second, many central banks and investment funds are increasing their gold purchases to supplement foreign exchange reserves, which is also an important reason for the increase in gold prices.

Third, US President Donald Trump's announcement of high reciprocal tariffs with countries around the world has negatively impacted investor sentiment and global economic growth, causing investors' cash flow to tend to flow into gold;...

Domestically, the price of SJC gold bars moved in the same direction as the world price, from 84.05 million VND/tael on the first day of 2025, increasing to around 100.4 million VND/tael on March 19, 2025.

The State Bank of Vietnam believes that the high gold price is a common trend in both the international and domestic markets. However, the difference between the average domestic gold buying and selling price and the world price has decreased significantly compared to 2024 (at times the difference reached its highest level in 2024 of about 18 million VND/tael, equivalent to 25%), and now it is about 2-4 million VND/tael (equivalent to about 3~5%), at many times the buying price of SJC gold bars is lower than the converted international gold price.

"This development shows that with recent gold market management measures, the difference between domestic SJC gold bar prices and converted world gold prices is controlled within an appropriate range," the State Bank affirmed.

Regarding gold market management, the State Bank said it has submitted a report to the Prime Minister proposing the development of a Decree amending and supplementing Decree No. 24/2012/ND-CP dated April 3, 2012 on the management of gold trading activities.

In the coming time, the State Bank will continue to manage the gold market based on the direction of the Government, the Prime Minister, and legal regulations; closely coordinate with ministries, branches, and localities in managing gold trading activities.

At the same time, we will continue to perfect the legal framework for gold business management, focusing on summarizing Decree No. 24/2012/ND-CP dated April 3, 2012 of the Government on gold business management to propose, amend and supplement in accordance with the practical situation.

On April 18, the Government Office issued document No. 3332 conveying the direction of Deputy Prime Minister Ho Duc Phoc regarding the domestic gold price movement.

After reviewing the Government Office's quick report on the gold market situation on the same day, the Deputy Prime Minister requested the State Bank to preside over and coordinate with relevant agencies to closely monitor developments in the domestic and international financial, monetary, foreign exchange, and gold markets.

The regulatory agency needs to "urgently implement solutions according to regulations to stabilize the gold market; further strengthen inspection, examination and strictly handle violations according to regulations, not allowing profiteering, manipulation, price fixing, speculation... in the gold market" quoted from the directive document. At the same time, the State Bank is assigned to proactively deploy information and communication measures to stabilize social psychology.

Source: https://baodaknong.vn/nguyen-nhan-nao-khien-gia-vang-lien-tuc-tang-cao-ky-luc-250032.html