US Political Turmoil Pushes Global Gold Prices to New Records

Since the beginning of 2025, international gold prices have climbed nearly 50%, fueled by political instability in the United States and heightened geopolitical tensions worldwide.

The latest trigger came at midnight on October 1 (US time, 11 a.m. Vietnam time), when the US government officially shut down after Congress failed to pass a temporary spending bill. This marks the first shutdown in more than six years, forcing many federal agencies to suspend operations and leaving hundreds of thousands of workers affected.

Analysts note that the impact this time is particularly significant because the shutdown occurs at a moment when markets urgently need US economic data to anticipate the Federal Reserve’s next policy moves. With information cut off, investors are turning to gold as a safe haven asset.

Michael Field of Morningstar explained that beyond the US shutdown, geopolitical conflicts, tariff uncertainties, and global instability are creating a highly unsettled outlook for investors. Meanwhile, Philippe Gijsels of BNP Paribas Fortis forecast that gold could surpass $4,000/ounce and potentially climb even higher.

Domestic market reaction (Vietnam):

• SJC gold bars traded at 136.40 – 138.40 million VND/tael, up 1.9 million VND from yesterday.

• SJC gold rings: 131.80 – 134.50 million VND/tael.

• PNJ Kim Bao 999.9: 132.00 – 135.00 million VND/tael.

• Bao Tin Minh Chau rings: 133.00 – 136.00 million VND/tael.

Based on Vietcombank’s USD selling rate (26,466 VND/USD), global gold is equivalent to 125.62 million VND/tael, still 12.78 million VND/tael lower than domestic SJC prices.

👉 With political instability in the US and capital shifting away from risky assets, the upward momentum of gold is expected to continue.