Brian Jeffrey
Gold Prices Surge in Vietnam
As of 3:30 PM on November 27, gold prices in Hanoi and Ho Chi Minh City have shown a rise. SJC and DOJI reported their buying prices at VND83 million per tael, reflecting an increase of VND300,000 per tael, with selling prices reaching VND85.5 million, which is also an increase of VND300,000.
In Ho Chi Minh City, PNJ gold is being bought at VND83.5 million per tael, marking an increase of VND800,000, and sold at VND84.5 million, up by VND100,000.
Across Bao Tin Minh Chau and Phu Quy Shops, SJC gold prices have also risen, now trading between VND83 million and VND85.5 million per tael, reflecting a VND200,000 rise from the day before.
These price fluctuations have led to investor concerns. Analysts attribute the stagnation in gold prices to the recent geopolitical developments in the Middle East, primarily following the ceasefire agreement between Israel and Hezbollah.
Additionally, the incoming administration of President-elect Donald Trump is expected to implement tariffs on imports, which could lead to rising inflation. This scenario might delay the US Federal Reserve’s interest rate cuts, subsequently applying pressure on gold prices.
The market is particularly attentive to the Federal Reserve’s upcoming decisions in December, which are anticipated to significantly influence market trends and gold pricing.
Investment Insights and Risks
Looking ahead to the Tet holiday in late January 2025, Nguyen Huu Huan from HCM City Economics University expresses caution regarding gold investments, citing high risks. Gold prices have surged threefold in recent years, climbing from VND30 million to nearly VND90 million per tael, indicating profit-taking pressure not only in Vietnam but globally.
Huan states, “The price of gold is heavily influenced by geopolitical events,” noting a recent drop of $100 on November 25, following the ceasefire agreement between Israel and Hezbollah. He highlights the unpredictability of global geopolitical events, which often hinge on the decisions of world leaders.
Furthermore, he notes a trend among nations to diversify their economic strategies, moving away from reliance on the US dollar. The BRICS nations, in particular, are considering a new monetary framework and potential common currency, likely affecting gold prices in the long term as these countries might increase gold purchases to support their new currency systems involving gold or bitcoin.
If this trend persists, it could result in sustained increases in gold prices, driven by a growing global demand for gold as a reserve asset.
