🟢The relationship between gold prices and inflation

Gold is often viewed as a "safe haven" asset and a hedge against inflation. When inflation rises, the real value of currency decreases, prompting investors to turn to gold to preserve wealth. However, the gold price that is "sufficient to offset inflation" is not a fixed number but depends on:

1. Actual inflation rate: Measured by the consumer price index (CPI) or core inflation.

2. Strength of the USD: Since gold is priced in USD on international markets, when the USD strengthens, gold prices often face downward pressure and vice versa.

3. Monetary policy: The interest rates of the Federal Reserve (Fed) and other central banks affect the opportunity cost of holding gold (a non-yielding asset).

4. **Geopolitical and global economic factors**: Economic instability or trade wars can drive gold prices higher than necessary to "offset" inflation.

🟢Current situation (March 2025)

- According to recent data, global gold prices at the beginning of 2025 fluctuate around 2,600–2,700 USD/ounce, with some moments exceeding 3,000 USD/ounce (based on reports from Vietstock and StoneX). This reflects concerns about rising inflation and instability from U.S. tariff policies under President Donald Trump.

- Domestically, SJC gold bars and gold rings are priced at about 84–96 million VND/tael, depending on the time, with a significant increase since the beginning of 2024.

- Inflation in Vietnam during the first two months of 2025 was recorded at 3.27% (according to the General Statistics Office), while global inflation, particularly in the U.S., remains a critical factor influencing gold prices.