Vietnam gold prices hit all-time high despite global rate decline

Earlier on Thursday, the global gold price had surged to nearly US$3,580 per ounce—a historic peak—before dropping to $3,528 per ounce by 10:00 am.

Meanwhile, the selling price of SJC gold bars in Vietnam rose by VND500,000 ($19) per tael to VND133.9 million ($5,088), its highest-ever level.

The buying price stood at VND132.4 million ($5,022) per tael, maintaining a VND1.5 million ($57) spread between buying and selling prices.

A gold tael equals approximately 1.2 troy ounces.

The price of 9999 gold rings sold by SJC reached VND128.7 million ($4,879) per tael, while the buying price was VND126.2 million ($4,783), up VND700,000 ($26.5) compared to the previous day.

The spread between buying and selling prices widened to VND2.5 million ($95) per tael.

Over the past few days, the price of gold rings has increased more rapidly than that of gold bars due to rising public demand for ring gold.

Global gold prices have repeatedly hit new highs recently, supported by a weakening U.S. dollar and expectations that the U.S. Federal Reserve (Fed) may cut interest rates at its upcoming September meeting.

According to data from CME’s FedWatch Tool, investors are now betting with over 87 percent certainty on a 25-basis-point rate cut this month.

Additional rate cuts are also anticipated. The Fed remains concerned that tariffs could drive up inflation.

Additionally, the gold market is entering a major seasonal demand period. Combined with expectations of a Fed rate cut in September, this could push gold prices to new record highs.

Currently, SJC gold prices in Vietnam are VND21.15 million ($803) per tael higher than their global equivalents, while gold ring prices are VND15.95 million ($605.5) higher, posing significant risks for buyers.

The Vietnamese government has recently issued a decree ending the state monopoly on gold bar production and the import and export of raw gold.

However, this regulation will only take effect on October 10.

The market is also awaiting further guidance via a circular that will allow eligible banks and gold enterprises to obtain import quotas and begin producing gold.

It is forecast that domestic gold prices may start cooling down by November, once supply increases. 

Until then, high prices in the local market are expected to persist.