Why is gold price increasing so much?

Explaining this, experts said that when the global economy is experiencing many fluctuations and instability, the attractiveness of gold is growing.

In this morning's trading session, the world gold price skyrocketed to 2,082 - 2,083 USD/ounce, far exceeding the previous prediction of 2,050 USD/ounce. The increase in gold reserves by China and central banks around the world is one of the main drivers supporting the price of precious metals.

China’s gold reserves increased for the 14th consecutive month in December 2023. Similarly, central banks, especially those in emerging markets, have significantly increased their gold reserves over the past decade. In the first half of 2023, China and Russia were the two leading countries in gold purchases at record highs, up 800 tonnes (14%) compared to the same period last year.

According to Dr. Nguyen Tri Hieu, a finance and banking expert, these fluctuations in the world market have directly affected domestic gold prices, pushing gold prices up.

Domestic gold prices continued to increase sharply on the morning of March 2, 2024. (Photo: Minh Duc)

In addition, in the Vietnamese market, gold supply and demand are not stable. Gold supply is still limited because the State Bank of Vietnam (SBV) is currently the only entity that can import gold.

"At this time when market demand is high, the "gold import valve" should be opened. I think that Decree 24 should adjust the regulations so that more gold traders can participate in gold import instead of just the State Bank, then the domestic gold price will be more stable," said Dr. Nguyen Tri Hieu.

Mr. Hieu further analyzed that currently, bank interest rates are getting lower and lower, real estate investment channels have not fully recovered, and stocks are up and down. Therefore, gold is still considered an attractive investment channel. The increase in gold prices is also understandable.

Factors that have supported domestic gold prices to continuously increase this morning, March 2.

By noon, the price of SJC gold bars stood at an all-time high of VND81 million/tael, breaking the record of VND80.4 million/tael set at the end of December 2023, even surpassing the price of VND80.7 million set not long before.

Meanwhile, the price of gold rings is also at its highest level of 67.6 million VND/tael (selling price).

Difficult to buy gold bars, gold rings

A survey by VTC News reporters shows that in recent days, many people have wanted to buy gold rings but have not been able to. Many stores on Tran Nhan Tong Street, Cau Giay Street... (Hanoi) announced that they were out of stock when customers asked to buy plain round gold rings.

The time when SJC gold price jumped to its highest level in history: 81 million VND/tael. (Photo: Minh Duc)

Some small retail stores still have gold rings, but sellers say the quantity is not much and is very scarce.

“My store only has a few plain round gold rings of 1 chi, 1 0.5 chi and 1 2 chi left in the cabinet. As for gold bars, there are only Linh Giap gold bars left, no SJC gold bars left,” said the owner of Ha Dung gold store on Tran Nhan Tong street.

Meanwhile, staff at the SJC Northern branch on Giang Van Minh Street (Ba Dinh, Hanoi) also said that there are no more plain round rings. There are also no more 1-chi SJC gold bars. Also at the SJC branch on Tran Nhan Tong Street, staff said there are no more 1-chi rings. There are also no 1-chi gold bars.

Cong Hieu

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