Experts call for caution when investing

Opening this afternoon (April 22), the domestic SJC gold bar brand increased sharply by 3 million VND per tael following the increase in world gold prices. Experts warn investors not to follow the crowd to buy gold at record high prices, because they may face risks if the market adjusts strongly.

Gold price increased by 6 million VND in 1 day

As of 4:10 p.m., the price of SJC gold at Saigon Jewelry Company, Phu Quy Company and Doji was listed at 122-124 million VND/tael, up 3 million VND/tael compared to the morning session and up 6 million VND compared to the previous session. This is the highest price ever.

At the same time, the price of gold rings at Phu Quy Company, after increasing to 121.5 million VND at the end of the morning session, returned to 117-120 million VND/tael (buy-sell) this afternoon.

Bao Tin Minh Chau Company announced the price of plain round gold rings from 119-122 million VND/tael (buy/sell), an increase of 1 million VND/tael compared to the previous closing price.

The price of SJC 999.9 gold rings also increased by 500,000 VND per tael, currently trading around 116-119 million VND/tael.

Due to the high price of gold, businesses have left a difference of 2-3 million VND per tael, which puts the risk on the customer.

In the world, the price of gold fluctuated around 3,454 USD/ounce, up 29 USD compared to the morning session (early this afternoon, this precious metal had reached 3,483 USD). This price is equivalent to 108.6 million VND/tael when converted according to the USD exchange rate at Vietcombank, lower than the domestic price by 12-15 million VND/tael depending on the enterprise.

Gold prices hit all-time high. (Photo: Vietnam+)

Since the beginning of the year, the world gold price has increased by about 30%. Since Mr. Trump announced the reciprocal tariff plan on April 2, the world gold price has increased by about 8%.

Reasons for the sharp increase in gold prices

Mr. Nguyen Quang Huy - Executive Director of the Faculty of Finance and Banking, Nguyen Trai University, said that the world gold price exceeding the threshold of 3,400 USD/oz is not simply the result of technical factors or short-term speculation, but deeply reflects the increasingly uncertain state of the global economy. The US is currently going through challenging times with fierce debates about policy, fiscal management and global position.

At the same time, the relationship between the US and China is increasingly tense, not only on the trade front but also spreading to the technology sector, strategic supply chains and regional geopolitics. Recently, Donald Trump announced 8 signs of tax fraud, indicating the possibility of re-imposing high tariffs on imported goods from China or some related countries if he returns to the White House, making global investors more vigilant. The reciprocal moves between the world's two largest economies are creating potential systemic risks and causing global financial markets to enter a more defensive state.

“In that context, gold continues to play its role as a hedge against risk, when confidence in the stability of the stock, bond or currency markets is shaken. Gold’s conquest of historical price levels is not only the result of defensive cash flows, but also a symbol of concerns about deeper macroeconomic instability in the new global cycle,” Mr. Huy analyzed.

Regarding the domestic market, Mr. Huy commented that the current gold price is much higher than the world price, reflecting the resonance of many factors such as hoarding psychology and limited supply. In the context that alternative investment channels such as stocks, real estate or bonds have not really recovered strongly, gold has become a "safe haven" for most individual investors.

Mr. Nguyen Quang Huy - Executive Director of the Faculty of Finance and Banking, Nguyen Trai University. (Photo: Vietnam+)

However, according to Mr. Huy, the huge difference between domestic and world prices also poses risks for new investors entering at high prices, especially if the market makes a technical adjustment in the short term.

Mr. Huy warned that if global tensions are not controlled soon and market sentiment continues to be driven by political and fiscal instability, gold prices could test the $3,500/oz zone in the next quarter. However, investors should note that this is a technically and psychologically sensitive zone, and the market could enter a short-term accumulation and adjustment phase to establish a new price level.

“Gold is still a suitable investment channel to hedge against macro risks and protect assets during periods of instability. However, gold does not generate cash flow or increase value in the long term. Therefore, gold should only account for a small and reasonable proportion in the investment portfolio. More importantly, investors need to diversify their portfolios and avoid depending on a single asset. The combination of defensive assets such as gold, bonds and value-creating assets such as stocks and selective real estate will bring sustainable efficiency,” Mr. Huy emphasized.

Sharing the same view, Mr. Huynh Trung Khanh (World Gold Council) also warned that the current gold price is in the "overbought" zone, indicating the risk of a downward correction. Investors should not follow the crowd psychology to buy gold at record high prices, because they may face risks if the market corrects strongly.

Meanwhile, Associate Professor Dr. Nguyen Huu Huan said that in the current context, stabilizing the gold market is very difficult, because the principle to stabilize the market is to have a supply source.

“It is very difficult to use foreign currency to intervene in the gold market at the present time. The only immediate solution is to use administrative measures to regulate the market, thereby reducing the price gap with the world market to the lowest level and limiting the trend of investing and hoarding gold,” Mr. Huan commented.

In the long term, according to Mr. Huan, it is necessary to solve the problem of gold supply. At the same time, building a credit gold market will help solve the problem when the demand for physical gold increases.

Source: https://baodaknong.vn/vang-dat-dinh-124-trieu-dong-chuyen-gia-keu-goi-than-trong-khi-dau-tu-250247.html