At 9:00 a.m., SJC listed the price of gold bars at VND88.2 - 90.5 million/tael, an increase of VND1 million/tael compared to early this morning.

Thus, the incredibly high price that many people had previously mentioned, 90 million VND/tael, was not only established but even surpassed.

Thus, since the April 30 - May 1 holiday, domestic gold bar prices have continuously set many record highs, conquering the 87 - 88 - 89 - 90 million VND/tael mark, respectively.

Gold expert Tran Duy Phuong said the main reason is due to supply and psychological problems.

The current gold supply is being increased by the State Bank of Vietnam (SBV) through auctions. However, after businesses win the bid, it takes a certain amount of time for the gold to reach the businesses and then the market will be supplemented with supply.

Meanwhile, people's current mentality is that savings interest rates are low, so they will withdraw money to buy gold. Furthermore, they believe that world gold prices will increase, so domestic gold prices may increase to 90, even 100 million VND/tael.

"This psychological problem can be seen most clearly recently, when the more gold is auctioned, the more the price increases, so people still buy gold because they think the price will hardly decrease," said Mr. Phuong.

According to Mr. Phuong, to cool down the gold price, the State Bank needs to be more drastic and increase the number of gold auctions. In particular, the auction price needs to be more reasonable so that businesses can easily buy.

"The more continuous the bidding intensity is, the more gold will be supplied to the market, only then will the problem of scarce supply be solved," Mr. Phuong emphasized.

Meanwhile, people are currently chasing gold prices because the price keeps increasing. They expect the price to continue to increase and are often impatient with the herd effect. The more gold prices increase, the more people believe that gold can ensure the safety of their investments. This psychological factor makes people rush to buy gold, continuing to increase demand, making it difficult for gold to decrease in price.

In addition to supply and psychological factors, the price of gold bars skyrocketed this morning due to the strong increase in world gold prices when the precious metal suddenly jumped after many days of decline.

Specifically, early this morning, the world gold price was listed on Kitco at 2,348 USD/ounce, an increase of 40 USD/ounce compared to early this morning.

Gold prices rose sharply due to a weaker US dollar and the possibility that the Fed will not cut interest rates this year.

The US Dollar Index fell 0.32% to 105, increasing the appeal of gold to buyers holding other currencies.

Analysts said gold prices rose higher after several major central banks decided to cut interest rates or signaled their readiness to cut interest rates more in the future.

Lower interest rates reduce the "opportunity cost" of holding gold, a non-yielding asset, making it a more attractive investment.