While stock and USD indices fluctuated continuously, gold remained steadfastly climbing. Since the beginning of 2025, world gold prices have broken through two milestones of 3,000 and 4,000 USD/ounce respectively. No one really understands why gold prices have increased so much, but like every previous cycle, when prices increase, the market creates its own story to explain.
According to the reflexivity theory of legendary American investor George Soros, market sentiment can consolidate itself. People see gold prices increase, find reasons to legalize that trend, then buy more - causing prices to increase even more. When economic data is no longer commensurate, the mentality of "buying because the price is rising" dominates the market, and a bubble forms.
History has recorded two major "golden balls".
For the first time, in 1976-80, gold exploded amid high inflation, political instability and oil crisis, before plummeting for two decades.
Second time, in the period of 2001-2011, gold prices escalated in the context of the global financial crisis, peaking in August 2011 at 1,900 USD/ounce and then collapsed sharply, losing nearly half of its value in 2015.
After years of accumulation, from 2024 to now, gold has accelerated again - which can be considered the third bubble in the making, according to Bloomberg veteran financial expert John Stepek.
Analysts have long viewed gold as a "investment portfolio insurance" - a shield in the chaos of the financial system. When investors are worried about the future of the statute of limitations or the stock market, they look to gold.
Both the years 1980 and 2011 coincide with global earthquakes: the oil crisis, the cold war, or the banking collapse. Currently, the context is no different: US-China tensions, regional conflicts, mounting public debt, and the worry about AI "swallowing the job" are making the global market insecure.
During that period of uncertainty, the need for absolutely safe arose. And gold - a symbol of sustainability - has become the number one choice.
However, veteran investors who have seen two gold bubbles before are now more cautious than ever. They are no longer accumulating more but are taking profits, reducing risks.
A positive handshake between the US and China could be a reversal signal, as it would ease geopolitical concerns and reduce demand for shelter, according to experts from Gavekal Research. However, there is no sign that any big gold seller is ready to show up to pull the price down.
Historically, after each gold fever, the market often went through a period of "long silence" - prices plummeted, investors withdrew, and gold lost its appeal for decades.
As of 9:18 a.m. (Vietnam time) on October 16, the world gold price was trading at 4,233.06 USD/ounce.
Regarding domestic gold prices, as of 9:00 a.m. on October 16, SJC gold bar prices were trading around VND146.6 - 148.6 million/tael (buy - sell).
Bao Tin Minh Chau gold ring price 150 - 153 million VND/tael (buy - sell).
In the face of unpredictable fluctuations in domestic and international gold prices, experts from Bao Tin Minh Chau also recommend that investors and people consider before trading and regularly monitor gold prices on official channels to make the most correct decision.
