Gold price continues to fall: SJC bars now only 115 million VND!

Gold price continues to fall: SJC bars now only 115 million VND!

On May 27, 2025, there was a noticeable decline in gold prices in Vietnam. The price of SJC gold bars was quoted at VND115.5 million to VND118 million per tael, down VND1 million compared to the previous day, Vietnam reports. The price of simple gold rings also fell by VND500,000, reducing the buying and selling prices to VND111 million to VND114 million per tael. This results in a current spread of VND2.5 million between the buying and selling prices.

The global gold market is also showing a downward trend. The international price of gold is currently about $3,300 per ounce, which is $40 less than before. This corresponds to approximately VND 103.8 million per tael. These developments are due, among other things, to falling demand and the delay in import tariffs on European goods. The latter was postponed by Trump until July 9, 2025.

Impact of the US economy on the price of gold

Economic conditions in the US are putting strong pressure on gold prices. The US budget deficit, already at $36.2 trillion, will be further increased by a new tax cut law. This could increase the national debt by around $3.8 trillion. Investors are now turning their attention to upcoming statements from Federal Reserve (Fed) officials as well as the Personal Consumption Expenditures Price Index (PCE Core) report to be released on May 30, 2025. Futures traders expect a Fed rate cutting cycle starting in September.

The USD index rose 0.42% to 99.53 points after falling almost 2% the previous week. The central exchange rate on May 27 was set at 24,935 VND/USD, a decrease of 5 VND. Business USD exchange rates fluctuate between VND23,691 and VND26,182, with major banks offering prices from VND25,710 to VND26,100 for buying and selling. On the black market, the rate is 26,240 to 26,340 VND, which is 80 VND lower than before.

How gold prices are determined

Gold prices are set internationally in dollars per troy ounce, which is approximately 31.1 grams. These prices, also known as spot prices, are based on supply and demand and are determined on important trading centers such as New York, London, Tokyo and Shanghai. Factors that influence gold supply include mine production volumes, recycled gold and sales by central banks and investors.

Total gold demand totaled 4,741 tonnes in 2022, with the jewelry sector accounting for 46% of demand, followed by central banks at 24% and the investment sector accounting for 23%. Market psychology and investors' perception of crisis also play a crucial role in price formation.

Considering the current situation, it is clear that the gold market is influenced by both local and global factors. Investors are curious to see how developments will play out on the markets over the coming weeks.

Vietnam reports and Gold.de delivers further information on current prices and market conditions.