At 3.30pm on November 27, SJC and DOJI buying gold prices in Hanoi and HCM City were quoted at VND83 million per tael, an increase of VND300,000 per tael, and selling prices at VND85.5 million, up VND300,000 per tael.

Meanwhile, PNJ gold in HCMC was bought at VND83.5 million per tael, up by VND800,000, and sold at VND84.5 million, up by VND100,000.

SJC gold at Bao Tin Minh Chau Shops and SJC gold at Phu Quy Shops was traded at VND83-85.5 million (buy/sell) per tael, an increase of VND200,000 over the previous day.

The gold price fluctuations yesterday worried investors. Analysts said the latest geopolitical tensions in the Middle East after Israel and Hezbollah reached a consensus on a ceasefire kept gold prices from increasing.

Another factor impacting gold prices is the US decision by President-elect Donald Trump to impose tariffs on imports, which will cause inflation to escalate. Therefore, the US FED may be slower in cutting interest rates, which would put pressure on gold prices.

Currently, the market is looking forward to the FED’s decision in December. The FED moves will have a big impact on the market and determine gold price trends.

Regarding people’s investment in gold from now to 2025 Tet (late January), Nguyen Huu Huan from the HCM City Economics University, said there are high risks. 

According to the expert, gold prices have increased threefold, from a low of VND30 million per tael to nearly VND90 million, which means profit-taking pressure, not only in Vietnam, but also in the world.

“Gold prices heavily depend on geopolitical happenings,” he said. “That is why the gold prices dropped by $100 on November 25, right after Israel and Hezbollah agreed to ceasefire."

“Meanwhile, it is difficult to predict geopolitical occurrences around the globe, because this depends on leaders’ will,” Huan added.

He said that countries tend to diversify markets and even diversify currencies in the time to come, rather than perching on the US dollar.

The BRICS countries have recently begun thinking of a new monetary system and a new common currency, which would impact gold prices in the long term. This is because the countries are expected to buy more gold to build a new currency system with gold or bitcoin put at the center.

If the trend continues, gold prices will keep increasing regardless of geopolitical happenings, because countries’ demand for gold for reserves will still increase.

Tuan Nguyen