On April 19, 2025, gold prices in Vietnam experienced a sharp decline, surprising many investors who had rushed to buy gold just days earlier when prices soared above 120 million VND per tael. Following directives from Deputy Prime Minister Ho Duc Phoc, the price of SJC gold bars dropped significantly, leading to potential losses for those who had purchased gold at its peak.
As of 11:00 AM, SJC gold bars were listed at 111-115 million VND per tael, reflecting a decrease of 6 million VND on the buying side and 5 million VND on the selling side compared to the previous session. Similarly, the price of gold rings was adjusted down to 109.5-113.5 million VND per tael, marking a drop of 4.5 million VND on the buying side and 3.5 million VND on the selling side.
In a more dramatic shift, Mi Hong reported prices for SJC gold bars at 112-115 million VND per tael, which was a staggering decrease of 10 million VND on the buying side and 7.5 million VND on the selling side since the previous afternoon. With such fluctuations, individuals who bought gold just yesterday could face losses ranging from 10 to 11 million VND per tael for SJC gold and between 8.5 to 9.5 million VND for gold rings.
The sudden drop in prices came after a period of intense buying activity. On April 18, as prices surged, hundreds of people lined up at stores to purchase gold, with many shops reporting shortages or limiting sales to one tael per customer. However, the following day, as prices plummeted, stores began to offload their stock, allowing customers to buy without restrictions.
For instance, Bao Tin Minh Chau, a prominent gold dealer, changed its policy from allowing customers to buy only one tael to a maximum of ten taels on April 19. This shift reflects the dramatic change in market sentiment. One customer, Bui Thanh Ha from Thanh Xuan, shared her experience: "I had to bring my child with me today because I needed to buy gold to settle a debt. I was able to purchase one tael at a much lower price than I expected, saving me 5 million VND, which is significant for my budget as an accountant."
Another customer, Bich Diep from Hai Ba Trung, expressed relief at the price drop, stating, "I brought 120 million VND to buy gold today, thinking I would have to wait in line like yesterday. I ended up saving a considerable amount compared to what I would have paid the day before."
Meanwhile, some investors, like Mr. Thanh from Dong Da, opted to sell their gold, fearing further price declines. He mentioned, "I decided to sell my gold to fund my child's education abroad. I held onto it for a long time, and now I’m selling it at a profit, nearly three times what I paid back in 2010. But with the current trends, I believe prices will continue to drop."
The backdrop for these market fluctuations includes a recent directive from the government aimed at stabilizing the domestic gold market. On April 18, the Government Office conveyed Deputy Prime Minister Ho Duc Phoc's instructions to closely monitor financial market trends, including gold prices. The directive emphasized the need for immediate measures to stabilize the gold market and prevent speculative trading.
In a broader context, the international gold market also saw a decline, with prices recorded at 3,326 USD per ounce. This represents a slight increase of 1.08% from the previous day but highlights a trend of profit-taking by investors after reaching record highs. Converted to VND at the current market rate, this puts the world gold price around 105.7 million VND per tael, which is still about 14.3 million VND lower than the domestic SJC gold price.
Experts predict that despite the current dip, the global gold price could rise significantly in the coming months. According to a report by Citi Research, gold prices may reach 3,500 USD per ounce within the next three months, driven by increased demand from insurance companies in China and a global shortage of physical gold. This situation is expected to create upward pressure on prices, as demand for gold for both investment and industrial use is anticipated to outstrip supply.
Moreover, central banks, especially in China, are increasingly purchasing gold to safeguard their assets. China's recent policy allowing insurance companies to invest in gold is expected to boost demand substantially. As the global economy faces uncertainties, gold is seen as a safe-haven asset.
In summary, the gold market in Vietnam is currently experiencing significant volatility, influenced by both domestic directives and international market trends. As investors navigate these changes, the contrast between the sharp declines in gold prices and the potential for future increases creates a complex landscape for buying and selling gold in the country.
