Mr. Shaokai Fan - Photo: WGC
In the first months of 2025, gold prices continued to skyrocket. On March 18 alone, domestic gold prices broke records twice to approach the threshold of 100 million VND/tael.
Mr. Shaokai Fan, director of Asia-Pacific region (excluding China) and director of global central banks at the World Gold Council, gave many analyses and forecasts about this market.
Reasons for the 'hot' increase in gold prices
* How does the World Gold Council assess the rate of increase in gold prices since the beginning of the year? How will recent fluctuations in world gold prices affect Vietnam?
- Gold prices rose significantly in early 2025, reaching an all-time high. As in previous periods, macroeconomic factors such as inflation concerns and the direction of monetary policy anchored gold prices at high levels.
This time, geopolitical concerns and uncertainty surrounding US tariff policy have also contributed to the increased appeal of gold.
In Vietnam, while rising gold prices may reduce demand for gold jewelry, demand for gold as an investment may continue to increase with the desire to protect against inflation and market volatility.
* How will the US tax policy affect the global gold market, including Vietnam, sir?
- The US tax policy has had a direct impact on the global gold market, increasing investors' interest in gold to hedge against risks in the context of instability.
These tariffs affect the global economy through increased inflationary pressures, which could also lead to increased demand for gold as a hedge against risk.
China may increase its gold purchases as a safe haven asset. For Vietnam, the impact of US tariffs could continue to weigh on gold prices, potentially disrupting the movement of gold as price volatility impacts domestic supply chains.
Factors that will affect gold prices that investors need to learn about
* Have you observed any particular trends or patterns in gold trading in response to US tariff policy?
- In early 2025, gold futures prices on the COMEX (New York Mercantile Exchange) began to diverge from those in London, as physical gold demand in the US increased significantly due to concerns over potential tariffs.
This has caused a price difference between the US gold market and the global gold market, and attracted a large amount of physical gold to the US.
While this situation has now subsided, there continue to be concerns about the impact of tariffs on existing gold supplies in the US.
* So how will the exchange rate and US government bond developments affect this market, sir?
- Movements in the US exchange rate and government bond yields play an important role in gold prices. Typically, a weaker USD and lower bond yields are beneficial for gold prices.
* So could the uncertainty caused by tax policies lead to increased demand for gold as a safe haven asset in Vietnam, similar to the global trend?
- Uncertainty due to US tariff policies may also boost gold demand in Vietnam. In uncertain economic conditions, gold is often considered a safe store of value. Not to mention, gold has an important and special place in Vietnamese culture.
* How can Vietnamese businesses and consumers minimize the impact of rising gold prices, sir?
- Gold is a globally traded asset, and its price is determined by events and economic forces around the world. Vietnamese investors should carefully study the factors that affect the price of gold and evaluate which financial instrument is most suitable for them.
Source: https://tuoitre.vn/gia-vang-tang-nong-hoi-dong-vang-the-gioi-chi-nguyen-nhan-va-du-bao-20250319090353755.htm
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