CaliToday (15/10/2025): Global financial markets were rocked today as the price of gold skyrocketed in a historic rally, smashing previous records and signaling widespread investor anxiety. The precious metal surged past the monumental $4,200 per ounce threshold on international markets, triggering a frenzy of buying activity and frantic analysis from Wall Street to Singapore.
This global phenomenon has had a dramatic local impact in Vietnam, a country with a deep cultural affinity for gold as a store of value. The price for a tael of SJC-branded gold bullion, the national standard, is now knocking on the door of an astonishing VND 148 million. This unprecedented price point has left local investors and everyday citizens in awe, underscoring the intensity of the current "gold fever."
(A "tael," or lượng in Vietnamese, is a traditional unit of measurement equivalent to approximately 37.5 grams or 1.2 troy ounces.)
What's Driving the Parabolic Rally?
Market analysts are pointing to a "perfect storm" of economic and geopolitical factors fueling this massive flight to safety:
Intensifying Geopolitical Tensions: Heightened conflicts and political instability in several key regions are pushing investors out of riskier assets like stocks and into the traditional safe haven of gold.
Persistent Inflation Fears: Despite efforts by central banks, persistent global inflation continues to erode the value of fiat currencies. Gold is seen as a reliable hedge against this purchasing power decay.
Economic Uncertainty and Recession Signals: With major economies showing signs of a significant slowdown, fears of a looming global recession are palpable. In such times, gold's lack of correlation with the economic cycle makes it an attractive asset.
Aggressive Central Bank Buying: National central banks, particularly from emerging economies, have continued their voracious appetite for gold, diversifying their reserves away from the US dollar and adding sustained buying pressure to the market.
"We are witnessing a classic flight to quality on an unprecedented scale," said a senior commodity strategist at a major investment bank in Singapore. "The $4,200 level wasn't just breached; it was shattered. This isn't just speculative froth; it's a fundamental repricing based on a deep-seated lack of confidence in the global economic outlook."
The Vietnamese Market Heats Up: The SJC Premium
In Vietnam, the surge is even more pronounced. The near-VND 148 million price tag for an SJC tael reflects not only the global trend but also a significant local premium. This premium is a long-standing feature of the Vietnamese market, driven by several factors:
Limited Supply: The state-owned Saigon Jewelry Company (SJC) holds a monopoly on the production of gold bars, and the government tightly manages the supply.
Strong Domestic Demand: Vietnamese people traditionally invest in physical gold for savings, as dowry for weddings, and as a hedge against currency devaluation and inflation. This cultural demand creates a consistently high price floor.
The result is a domestic price that often trades significantly higher than the converted global spot price, a gap that has widened dramatically during this latest rally. Local gold shops in Hanoi and Ho Chi Minh City are reporting a surge in both buyers looking to get in on the rally and sellers hoping to cash in on record profits.
As the world grapples with this new era of high-priced gold, the question on every investor's mind is: how high can it go? While some analysts are calling for a short-term correction, the underlying drivers of this historic surge show no signs of abating, suggesting that gold's dazzling ascent may not be over yet.
CaliToday.Net