CaliToday (31/12/2025): The relentless gold rally hit a sudden air pocket on December 30, sending domestic SJC gold bar prices tumbling by 3.3 million VND per tael in a single session, leaving recent buyers with immediate, steep paper losses.
The Domestic Plunge: "Buyer's Remorse" Closing the trading session on Tuesday, major jewelry houses listed SJC gold bars at 152.7–154.7 million VND per tael (buy-sell). At one point during the day, prices dipped as low as 152.2 million VND on the buying side.
The volatility has created a harsh reality for retail investors. Customers who bought in at the recent peak of 159.7 million VND just a day prior are now facing an instant loss of 7 million VND per tael due to the combined impact of the price drop and the widened spread (2 million VND) between buying and selling prices.
Street Scene: Scarcity Amidst Panic Despite the price correction, physical demand remains feverish. Reporters from Dan Tri observed long queues at gold shops on Cau Giay and Tran Nhan Tong streets in Hanoi. However, liquidity issues persist. SJC gold bars were largely "sold out," forcing shops to ration plain gold rings, with limits set at a maximum of 5 chi (0.5 tael) per customer. Staff cited limited supply despite the surge in foot traffic.
Global Correction: The "Profit-Taking" Wave The domestic drop mirrors a broader global retreat. Spot gold fell to $4,355 per ounce, shedding over $200 (approx. 4%) from its all-time high of $4,549 set just last weekend. The gap between domestic and international prices has narrowed to approximately 15.5 million VND per tael.
"All precious metals have recently hit new records. We are simply witnessing a natural bout of profit-taking following that run," observed David Meger, Director of Metal Trading at High Ridge Futures. Despite this pullback, gold is up an eye-watering 65% year-to-date, driven by its traditional role as a safe haven during economic and geopolitical instability.
The Structural Shift: Beyond Speculation While short-term traders cash out, experts argue the bull run is far from over. Robert Gottlieb, a veteran precious metals analyst, suggests the market is undergoing a fundamental structural shift.
"This is a wake-up call that 'hard assets' are a necessity," Gottlieb stated. He argues that the turning point occurred in 2022, when the U.S. and its allies "weaponized" the dollar. This compelled emerging market central banks to aggressively diversify reserves into gold to reduce reliance on the greenback.
"When central banks buy, they don't buy based on price; they buy based on policy," Gottlieb explained. With official gold reserves still relatively low in many nations, this "permanent bid" from central banks is expected to provide a floor for prices, cushioning the market against speculative volatility.