How have Vietnam gold prices moved in the last 3 years?

Gold bullion first breached the VND50-million mark in July 2020 amid widespread economic uncertainty due to Covid-19.

Many prominent global investors began sounding the alarm about rising inflation and advising investment in gold.

Central banks then rolled out unprecedented stimulus packages to boost economic recovery post-Covid.

As central banks printed money, their currencies depreciated, prompting many wealthy investors to look toward gold.

In Vietnam, gold prices rose by 14% from July 2021 to March 2022 before falling back to around VND50 million in September that year.

But they slowly gained in the following months to reach VND60 million in November 2023 when the U.S. Federal Reserve cut interest rates for the first time since 2020.

Then, in less than 18 months, gold skyrocketed to new highs and eventually hit VND100 million this week, reaching the three-digit level for the first time as global rates surpassed $3,000 per ounce.

This represents a 66.6% return in one and a half years and 100% in two and a half.

The gain was fueled by three factors: U.S. interest rate cuts, escalating geopolitical tensions and buying pressure from central banks.

But along the way there were some corrections, with the most significant drop occurring in mid-November 2024, shortly after Donald Trump’s re-election as U.S. President.

In a period of two weeks a tael of gold fell by nearly 9%.

Analysts correctly called this an "overreaction" to the U.S. election results, suggesting it was a short-term adjustment rather than a long-term trend.

But Goldman Sachs’ bullish view on gold and its forecast that the metal would surpass $3,000 in 2025 persuaded many to invest in the metal.

The bank said escalating trade tensions following Trump’s inauguration could boost gold demand.

Concerns over the sustainability of U.S. fiscal policy were seen as supporting the precious metal’s price, it said, highlighting that central banks – particularly those holding significant U.S. government bonds – might increase gold purchases.

Goldman Sachs now places gold in the $3,060-3,200 range by the end of the year.

Speaking about Vietnamese price trends, Huynh Trung Khanh, vice president of the Vietnam Gold Traders Association, said gold remains an attractive asset though its price growth would not be as significant as last year.

For those who do not yet own gold, Khanh suggests allocating 10% of their portfolio to this asset, but advises caution for people who own some and are considering additional purchases at the current high prices.