Gold Prices Surge Beyond Expectations: Experts Urge Caution for Investors

As of 3 PM today (October 17th), the price of gold rings from various brands surged significantly higher than SJC gold bars. Notably, Bao Tin Minh Chau JSC listed gold rings at VND 156 – 159 million per tael (buy-sell), a VND 5 million increase from this morning. This marks the highest gold ring price in the market, surpassing SJC gold bars by up to VND 6 million per tael. Phu Quy brand gold rings were listed at VND 150 – 153 million per tael…

SJC gold bars were quoted by enterprises at VND 153 million per tael… Both gold rings and SJC gold bars have reached their highest levels ever. The current gold price surge has exceeded all expert predictions.

In an interview with Tien Phong, Mr. Nguyen Quang Huy, an expert from the Faculty of Finance and Banking at Nguyen Trai University, analyzed that the gold price surpassing VND 150 million per tael is the result of a complex interplay of international and domestic factors, reflecting global financial market instability and defensive investor sentiment.

Globally, the escalating Russia-Ukraine conflict, ongoing U.S.-China trade tensions, and the risk of broader geopolitical instability have driven investors to seek refuge in gold as the “ultimate safe haven.” Major central banks’ continuous net purchases of gold to bolster foreign exchange reserves, coupled with expectations of rate cuts by the U.S. Federal Reserve (Fed) and the European Central Bank (ECB), have shifted global capital from bonds, the USD, and stocks into this precious metal.

Domestically, the market faces dual pressures from global trends and limited supply. Few entities are authorized to import and mint gold bars, while public demand for gold as a safe-haven asset has surged. This supply-demand imbalance has driven prices upward, with significant deviations from global rates persisting for extended periods. Herd mentality exacerbates the trend: buyers fear missing out, while sellers hesitate to part with their gold.

Mr. Huy advises individuals and investors that at current high prices, the risk of a sharp correction is substantial. With gold prices far exceeding intrinsic value, even minor shifts in Fed or ECB interest rate policies or a de-escalation of global conflicts could trigger a rapid price reversal. Investors should exercise caution and avoid herd behavior. Gold should constitute no more than 5% of a diversified portfolio, serving as a long-term defensive asset.

“More importantly, individuals should diversify their investments, enhance financial literacy, manage risks effectively, and seek opportunities in production and business rather than mere hoarding. Vietnam is actively promoting ecosystems for startups, digital transformation, high-tech agriculture, cultural industries, and circular tourism—sectors offering sustainable returns and genuine societal value. Prudence, knowledge, and innovation will be the enduring value-adds for Vietnamese in the knowledge economy era,” Mr. Huy emphasized.