Vietnam’s domestic gold prices surged to a new record on April 22, with gold bars from Saigon Jewelry Company (SJC) reaching VND 122.5 million (US$4,767) per tael or approximately US$3,973–US$3,972 per troy ounce, driven by soaring global prices and rising demand for safe-haven assets, the Vietnam News Agency is reporting.
Key points
- Global spot gold reached a new high of US$3,448 per troy ounce, up from US$3,423 the previous day. This is about 11 percent below the domestic gold price.
- Retail demand in Vietnam surged, with long queues reported and some stores limiting purchases to one mace (one-tenth of a tael or 0.12 troy ounces) per transaction.
- Plain gold rings were also up VND 3.5 million, with some stores listing prices as high as VND 122.5 million per tael.
- The spike is attributed to the weakening US dollar and growing trade tensions between the US and China.
Gold’s sharp rise in Vietnam reflects not only global market trends but also strong domestic retail demand amid economic uncertainty. With ongoing US-China trade tensions and expectations of prolonged volatility, Vietnamese investors are turning to gold as a safe store of value.
Notably, this could further widen the gap between domestic and international gold prices and put pressure on the State Bank’s efforts to stabilise the precious metals market. This includes selling gold from its reserves which it began to do last year. Assuming it has not imported any new gold, which seems unlikely given the pressure it would put on the local currency, said reserves must be vastly depleted by now. This may partially explain why limits of just a tenth of a tael are being applied.
See also: The Gold Price in Vietnam: Explained