Gold price increase slows down

Domestic gold prices have increased continuously for the past two weeks. As of September 6, SJC gold bars set a new record of VND135.4 million. Gold rings also approached the VND131 million/tael mark.

According to the General Statistics Office ( Ministry of Finance ), the gold price index in August increased by 1.2% compared to the previous month, up 48.62% compared to the same period last year. On average, in the first 8 months of this year, the gold price index increased by 40.25% compared to the same period last year.

Speaking to VietNamNet reporter, financial expert Phan Dung Khanh said that domestic gold price is affected by many factors, including the trend of world gold price reaching new peak, exchange rate fluctuations and investor expectations.

He analyzed that the world gold price has continuously reached peaks in the past two years, although the growth rate has slowed down in the last three months. The domestic exchange rate has also contributed to the increase in gold prices. In addition, investors' expectations, along with other markets such as stocks, have continuously reached peaks, causing short-term cash flows to shift to gold as a safe haven.

W-gold price.jpg
Gold prices continue to hit new highs, many people wonder whether to sell to take profit or buy and wait for further increases? Photo: Nam Khanh

However, according to him, although the State has recently issued many policies, the difference between domestic and world gold prices is still very high, more than 20 million VND/tael, not excluding speculative factors.

In the current context, Mr. Khanh commented that the rate of increase in gold prices has slowed down significantly compared to last year. In 2024, domestic gold prices fluctuated from over 60 to 90 million VND/tael, an increase of about 50%. But in 2025, the increase was lower. If last year, gold prices continuously reached new peaks after only a few days, this year the most recent peak was in April.

“Mid- and long-term cash flows have shifted to other investment channels such as stocks and real estate due to their faster profitability and better return. Therefore, although gold prices may increase, it is difficult to break out as strongly as before,” he said.

In addition, the slowing down of international money flows into gold has also affected the price increase of precious metals. Geopolitical instability factors such as the Russia-Ukraine tension have somewhat cooled down, causing the trend of investing in safe havens such as gold to cool down.

In the long term, this expert assessed that global cash flow is slowing down towards gold due to the less tense geopolitical context, the strong recovery of the US economy and many other countries, including Vietnam, which is boosting investment in technology and production. When capital flows into production and business such as stocks, gold is no longer the optimal choice.

Should I sell to take profit or buy and wait for the price to increase further?

If you buy gold at this time, expert Phan Dung Khanh warns that the risk is very high. Because the rate of increase in gold prices is no longer as fast as last year. Moreover, the difference between domestic and international prices is too high.

“If you buy gold to hold for 5-10 years, the risk is not high. However, if you hold gold in the short term, if the world price does not increase, as long as the difference between domestic and international prices narrows, those who buy gold at this time may suffer heavy losses,” said Mr. Khanh.

The expert said that investors who are holding gold in the short term can consider the right time to take profits to preserve capital and avoid risks from strong market fluctuations.

Associate Professor Dr. Nguyen Huu Huan (Ho Chi Minh City University of Economics) also warned that when the difference between domestic and world gold prices is too high, investors should not buy, especially should not buy following the market (FOMO).

The domestic gold price is currently largely dependent on “policy risks”. The expert believes that the Government will not let this large price gap continue. Fundamental solutions to stabilize the market will soon be implemented.

Mr. Huan noted that when the State Bank intervenes in the gold market with specific policies, domestic gold prices will certainly cool down, and investors will suffer great losses if they buy at the current price.

Source: https://vietnamnet.vn/gia-vang-kho-but-pha-manh-nhu-truoc-khong-nen-mua-duoi-theo-thi-truong-2439898.html