From record value to sharp decline in quantity
High gold prices are creating remarkable changes in the needs of Vietnamese people.
The World Gold Council (WGC)'s Q1/2026 Gold Demand Trends report shows that the value of jewelry gold consumption in Vietnam reached a record level of about 472 million USD. However, WGC noted that high spending does not mean that people buy more gold in volume. Gold price increases have caused buyers to spend more money on smaller amounts of gold.
In the second quarter, this trend is more clearly shown. According to the WGC report released on July 30, jewelry gold demand in Vietnam decreased by 28% compared to the same period last year, the strongest decrease among ASEAN markets tracked by this organization. WGC assesses that high domestic gold prices and cost of living pressure have affected consumers' affordability.
Not only jewelry gold, investment demand for gold bars and gold coins in Vietnam also decreased. In Q2/2026, the purchase volume of this group reached about 6.5 tons, down 28% compared to the previous quarter and 31% compared to the same period in 2025. This is a fairly strong decrease after demand reached 9.1 tons in Q1.
The above developments occurred in the context that international gold prices are still in a very high range. The average LBMA gold price in the second quarter reached about 4,506 USD/ounce, 8% lower than the record level of the first quarter but still 37% higher than the same period last year.
Sharing with Lao Dong, Ms. Le Thi Huong Tra - Lecturer at the Institute of Banking Science Research, Banking Academy - said that the gold demand of Vietnamese people should not be seen simply as a profit-seeking activity. "Gold for many Vietnamese people is not only a profit-seeking investment but also accumulation and preservation of asset value" - Ms. Tra commented.
This partly explains why high prices may cause buying volume to decrease but have not dispelled the demand for gold holdings.
Customers change their way of buying
WGC data also shows that when gold prices rise, consumers not only buy less but also change the type of product they choose.
In the second quarter, in ASEAN markets, jewelry gold with lower gold content continued to gain more market share as consumers adjusted their behavior in the face of high prices. Part of the demand also shifted from jewelry gold to investment-oriented products.
In Vietnam alone, WGC recorded in the first quarter that restrictions on gold bar supply have caused part of investment demand to shift to gold rings. At the same time, although demand for gold bars and gold coins decreased by 24% compared to the same period, repurchase volume increased by 31% compared to the fourth quarter of 2025.
The quite strong fluctuations between quarters show that buyers are increasingly sensitive to price movements.
According to Ms. Tra, after a period of strong gold price increases, a part of buyers no longer simply assess the current price as "expensive" or "cheap", but compare it with the price they expect in the future. When the price adjusts, the psychology of taking advantage of buying may reappear quite quickly.
However, Q2 developments also show that this sentiment does not always appear. WGC believes that the demand for gold investment in Vietnam is weakening as domestic prices decrease, making market sentiment less positive, while import restrictions continue to cause the domestic price difference to remain high.
This shows that the behavior of buying gold not only depends on whether the price increases or decreases, but also on the expectation that the price will follow in which direction afterwards.
Ms. Tra analyzed that the fundamental factors supporting gold demand still include geopolitical uncertainty, inflation concerns, asset diversification needs and gold buying activities of central banks. The WGC report at the end of July also forecasts that investment will continue to be the main driver of gold demand in the remainder of 2026, with buying power from Asia playing a significant role.
In the opposite direction, cash flow into gold may weaken if real interest rates increase, the USD becomes stronger, geopolitical risks decrease, and other asset channels become more attractive.
In Vietnam, the ability to improve supply and the narrowing price gap between domestic and world prices may also reduce part of speculative demand.
According to Ms. Tra, the fact that people continue to pay attention to gold does not mean that gold prices will only increase. The reality in the first half of 2026 shows that this precious metal may fluctuate strongly.
Data from the first two quarters of the year shows that Vietnamese people are still interested in gold, but high prices have reduced purchases, changed product choices and made more cautious investment decisions.
