Vietnamese investors rush to sell gold amid price volatility following Trump’s election win

As bullion prices dropped by more than 5% to VND85.5 million (US$3,370.79) per tael of 37.5 grams Thursday, people thronged the headquarters of Saigon Jewelry Company in HCMC’s District 3.

By 11 a.m. the company said it could not handle the volumes and so would stop operations and resume in the afternoon.

A few hours later the crowds were back and queued up, mostly to sell off their gold holdings.

A man named Hung, one of those seeking to sell, said he expected Trump to put an end to the Russia-Ukraine conflict and thus bring down oil prices, which in turn would reduce the demand for safe-haven gold.

Globally, spot gold plunged to a three-week low Wednesday but bounced back by 1.2% Thursday. It was at around US$2,701.10 Friday morning.

In Vietnam bullion also recovered quickly, rising by 1.17% to VND86.5 million per tael at the time of publishing.

Huynh Trung Khanh, deputy chairman of the Vietnam Gold Traders Association, said prices fell more in Vietnam than globally mostly because of investors’ overreaction to the election result.

“Although investors expect Donald Trump to handle geopolitical tensions swiftly, these are matters that cannot be resolved overnight.”

People had rushed to buy when prices rose and are rushing to sell now as prices drop, he added.

Nguyen An Huy, a personal finance consultant at consultancy FIDT, said that many Vietnamese had recorded big gains from gold this year as prices surged, and therefore they rushed to sell now to guarantee their profit.

The U.S. election was an event that many people followed closely and therefore its outcome caused them to make quick decisions, he said.

“This is why the local market reacted almost instantly.”

For now geopolitical tensions remain, and the dollar would likely fall due to the U.S. Federal Reserve’s rate cuts, and these would support gold prices, he added.

Meanwhile, Mi Hong gold store in HCMC’s Binh Thanh District also saw people flocking with gold, and remained crowded even at closing time.

But people also made purchases of cheaper-priced gold rings, expecting a price recovery.

The World Gold Council said that historically there has been no link between gold prices and U.S. election outcomes.