CaliToday (19/8/2025): Vietnam's domestic financial markets experienced a wave of volatility this morning as two key indicators—gold prices and the US dollar exchange rate—surged simultaneously, signaling growing caution among investors. The national brand, SJC gold bullion, reached a new record high, while the US dollar breached a significant psychological threshold on the unofficial market.
Record-Breaking Surge in Gold Prices
The domestic price of SJC gold bars, the most popular brand managed by the state-owned Saigon Jewelry Company, climbed to an unprecedented peak in early morning trading. This sharp increase has captured significant attention from the investment community, reaffirming gold's traditional role as a safe-haven asset in Vietnam amidst perceived economic uncertainty.
Market analysts note that the surge is driven by a combination of local demand and a reaction to global gold price trends. Investors appear to be channeling funds into the precious metal as a hedge against potential inflation and currency fluctuations. Trading floors reported brisk activity as individuals and institutions reacted to the new price point.
Vietnamese Dong Weakens as Dollar Climbs
In the foreign exchange market, the Vietnamese Dong (VND) weakened against the US dollar across both official and unofficial channels. Commercial banks adjusted their exchange rates upwards, reflecting stronger demand for the greenback.
More notably, the exchange rate on the "free market" or parallel market saw a significant jump. The selling price for the US dollar officially surpassed the VND 26,550 mark. This is a key milestone that indicates heightened demand for foreign currency outside of the formal banking system, often for trade payments or personal savings.
Market Outlook and Implications
The concurrent rise in both gold and the US dollar points to a "risk-off" sentiment prevailing in the market. This movement suggests that investors may be shifting away from other asset classes, such as stocks or real estate, seeking stability in tangible assets and foreign currency.
Economists will be closely watching the State Bank of Vietnam (SBV) for any potential policy response aimed at stabilizing the currency and gold markets. The central bank has historically employed various measures, including adjusting its reference exchange rate and intervening in the gold market through auctions, to curb excessive volatility. For now, the dual surge serves as a clear indicator of the cautious economic climate facing investors this morning.