Gold prices tumbled to their lowest level of the year on November 1, 2026, as the world's leading consumer market unexpectedly halted purchases. The sharp decline followed a week of red across domestic markets, with major brands like PNJ, SJC, and Doji adjusting prices down by 2.2 million to 2.9 million VND per ounce. The global gold price dropped below $4,000 per ounce, a 30% fall from its January 2026 peak of $5,595. Analysts attribute this to prolonged high interest rates and subdued demand, particularly from India, where imports plummeted by 81% in September.
The decline in gold prices has been exacerbated by a broader market turmoil, with US technology stocks facing sell-offs due to concerns over AI spending returns. Independent metals trader Tai Wong noted, "Corporate earnings are the foundation for the rise in AI stocks, but that pillar is now showing cracks." Commerzbank analysts suggested that margin calls from tech stock losses may have forced traders to sell safe-haven assets like gold.
Despite the current downturn, experts remain optimistic about gold's long-term recovery. The US Federal Reserve's decision to keep interest rates at 3.75-4.00% and the likelihood of a December rate hike are key factors influencing the market. Meanwhile, India's Prime Minister Narendra Modi has urged citizens to limit gold purchases, citing the need to preserve foreign exchange reserves. This, combined with a 15% import tax, has significantly reduced demand in the world's second-largest gold consumer.
As of October 31, 2026, the price of SJC gold bars ranged from 136.0 to 139.0 million VND per ounce, while plain gold rings were priced between 131.8 and 135.8 million VND per ounce. The world gold price closed at $3,876.40 per ounce, marking the lowest level in about a year. Analysts advise buyers to prioritize risk management and balance capital before making trading decisions.