Vietnam Gold Price Closes Gap with World Prices as Central Banks Stockpile

World gold prices have been rising again due to reduced concerns about interest rates. As of August 12th, they reached $4,403 per ounce, marking a significant increase from their lowest point in June.

The People's Bank of China (PBOC) has been actively purchasing gold, with net purchases of 20 tons in July. This trend is also seen in other central banks, such as the Czech Central Bank and the Central Bank of Kazakhstan, which have increased their gold reserves in recent months.

Experts attribute the rise in world gold prices to decreased expectations of a US Federal Reserve interest rate hike this year. As a result, investors are turning to gold as a safe-haven asset.

In Vietnam, the domestic gold price has been narrowing its gap with the world gold price. According to statistics, the difference between the two is now 4.1 million VND per ounce, the lowest in many years.