The World Gold Council’s latest report on gold demand trends for the first quarter of 2024 sheds light on this phenomenon. Global gold demand experienced a 3% uptick to 1,238 tons compared to the same period last year, marking the most robust increase since 2016. However, excluding over-the-counter (OTC) purchases, demand dipped by 5% to 1,102 tons.
Within this global context, Vietnam emerges as a standout, with investment demand for gold bars and coins surging by an impressive 12%, accompanied by a 6% rise in total consumer demand. The report attributes this surge to a combination of factors, including strong investment activity in the OTC market, continued gold acquisitions by central banks, and heightened purchases from Asian buyers.
These trends have propelled the average quarterly gold price to a historic high of $2,070 per ounce, marking a significant 10% increase from the previous year and a 5% uptick from the previous quarter. Central banks have notably played a pivotal role, adding a substantial 290 tons of gold to their reserves in the first quarter alone.
The report underscores the significance of gold in international reserve asset portfolios amidst market volatility and escalating risks. In Vietnam specifically, investment demand for gold bars and coins in the first quarter has reached its highest level since 2015.
According to experts, domestic investors are lured by the substantial increase in gold prices, particularly amidst concerns about rising energy costs, inflationary pressures, and currency depreciation against the USD. Notably, the selling price of SJC gold bars in Vietnam has surged to 87.5 million VND/tael, reflecting a significant increase compared to previous levels.
Shaokai Fan, regional director for Asia-Pacific (excluding China) and head of global central banking at the World Gold Council, highlights the common theme of local currency depreciation across ASEAN markets, driving demand for gold as a safe-haven asset and offering attractive profit potential based on local prices.
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Source: Vietnam Insider