Recent reports from Vietnam reveal long lines of investors queuing at state-owned banks in Hanoi and Ho Chi Minh to purchase gold bullion.
The surge in interest is attributed to lower prices offered by these banks, aligning with the Central Bank's goal to match domestic gold rates with global markets.
Vietnamese investors, spurred by reduced domestic gold prices, are flocking to banks like Saigon Jewelry Company (SJC), Agribank, Vietcombank, BIDV, and Vietinbank.
The Central Bank's decision to directly supply gold to these banks has led to a 1.2% discount on market prices per tael (37.5g) of gold.
While officials are investigating potential illicit influences on gold prices, many investors view gold as a stable asset amidst currency fluctuations.
Global gold prices are also on the rise due to geopolitical tensions and increased central bank demand, with predictions suggesting a further surge, reaching up to $27,000 by 2026 according to experts like Jim Rickards.