A report by the World Gold Council (WGC) reveals that gold demand in Vietnam has dropped significantly, likely due to soaring gold prices, which have dampened new purchases. In Q3 2024, Vietnam’s demand for gold jewelry decreased by 15% from the previous quarter and by 13% year-over-year, making Vietnam an exception in the ASEAN region, where countries like Thailand, Indonesia, and Malaysia saw double-digit growth.
Geopolitical tensions, domestic economic concerns, and anticipated gold price increases continue to drive investment interest across ASEAN. However, in Vietnam, demand for gold bars and coins fell by 33% compared to Q3 2023 and by 10% compared to 2023 overall. This trend is linked to the unprecedented surge in global gold prices, which reached an average of $2,474 per ounce in Q3, an all-time high that has contributed to a 12% decrease in global gold jewelry consumption by volume, despite a 13% increase in value.
According to Shaokai Fan, Asia-Pacific Regional Director at WGC, the high prices have heightened investment demand while potentially deterring some consumers. He suggests that price stability may be essential to sustain jewelry demand moving forward. Despite some declines in bar and coin investments, the global demand remains robust, driven largely by a “fear of missing out” mentality among investors and global instability. Senior WGC market analyst Louise Street forecasts that gold’s role as a safe-haven asset will likely keep demand high as geopolitical tensions, particularly in the Middle East and U.S., escalate.
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Source: Vietnam Insider