Since early October, domestic gold prices have continuously climbed, reaching a record high of VND146.1 million per tael on October 14, up VND7.7 million per tael compared to the beginning of the month.

This dramatic rise has raised concerns that the gold market is becoming a reflection of economic unease, as both individual investors and the general public increasingly turn to gold as a hedge against uncertainty. The spike in demand has created a supply-demand imbalance, adding more pressure to an already overheated market.

SBV Governor Nguyen Thi Hong acknowledged that the gold market remains structurally unstable, heavily influenced by public sentiment and expectations amid complex global economic and geopolitical developments. She pointed out a number of driving factors behind the widening domestic-international gold price gap.

Acccording to governor, the factors include the global surge in gold prices triggered by economic uncertainties, trade tensions, and a weakening US dollar; growing public expectations that gold prices would continue to rise amid low interest rates and constrained supply; and speculative behaviour by certain enterprises and individuals taking advantage of price volatility.

To ease and stabilise the market, the SBV has implemented practical measures, including increasing the supply of gold bars through auctions and direct sales to the market to narrow the price gap between domestic and international gold markets. This effort has significantly reduced the price difference from 25% to about 5-7% by early 2025. However, since mid-April, the gap has widened again, surpassing VND10 million per tael (equivalent to a 12% disparity) due to renewed global instability and geopolitical tensions.

To further address supply constraints, the government enacted Decree No. 232/2025/NĐ-CP, which eliminates the state monopoly on gold bar production and allows more businesses to import raw gold and produce bullion. The move aims to boost domestic gold supply, reduce market pressure, and limit price discrepancies.

To prevent speculation and price manipulation, the SBV has increased oversight of the gold market. It has worked alongside the Ministry of Public Security, the Ministry of Industry and Trade, and the Ministry of Finance to inspect and monitor trading activity, while strictly penalising acts of speculation and price manipulation.

Moreover, communication efforts have been enhanced to provide timely information, stabilise public and investor sentiment, and avoid negative reactions fueled by rumors.

Looking ahead, the SBV is researching the possibility of establishing a domestic gold trading platform to ensure more transparent and regulated market operations. International models are being studied as part of this effort, with a view to proposing a viable framework in the near future.

Despite the steps already taken, the SBV admits that the gold market remains sensitive and highly influenced by psychological factors. As a result, the central bank calls for broader coordination among ministries, government agencies, and local authorities, as directed by the Prime Minister, to ensure long-term market stability.

Experts caution that, with gold prices at historic highs, the domestic market faces continued volatility. Effective regulation, improved supply mechanisms, and robust enforcement will be critical in shielding the economy from the unpredictable impact of gold price fluctuations.

Gold prices soar above VND145 million/tael amid global surge

VOV.VN - Domestic gold prices in Vietnam skyrocketed to a historic high, surpassing VND145 million per tael on the morning of October 14, following a sharp rally in global gold prices that pushed the metal above US$4,135 per ounce.