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May 13, 2024 / 18:01

Vietnam c.bank to continue auctioning gold

The authorities would continue to inspect, monitor, and deal with gold smuggling, speculation, or the exploitation of hoarding policies to drive up prices and cause market instability.

The State Bank of Vietnam (SBV) has announced its intention to continue auctioning gold supply in quantities and frequencies sufficient to meet market demand and has advised citizens to exercise caution when trading.

 Locals buying gold at a jewelry shop in Tran Duy Hung Street, Hanoi. Photo: Pham Hung/The Hanoi Times

A representative of the SBV said at a meeting with the Ho Chi Minh City People's Committee to coordinate gold market management on May 12. The meeting followed numerous directives from the Government on solutions to control the gold market.

In the past two weeks, the SBV has held bidding sessions to increase supply to the market and cool down the price of gold compared to the global market. However, five bidding sessions were judged by the market as unsuccessful, as the reserve price was high, with only 6,800 taels of gold being offered against a bid volume of 84,000 taels. The price of gold continued to rise sharply after these bidding sessions.

During the meeting, the SBV stated that it would continue to organize auctions to "supply gold to the market with gold in quantities and frequencies commensurate with demand."

Saigon Jewelry Company (SJC) - a unit under the Ho Chi Minh City People's Committee - was also instructed by city leaders to continue its efforts to stabilize the market. The company was required to adhere to regulations on gold business management, electronic invoicing, anti-money laundering reporting, and the documentation of gold transactions.

SJC is a leading business entity in the gold trading market. In the two successful bidding sessions, the company won the bids twice in a row with a maximum volume of 2,000 taels per session. Additionally, this agency is increasing the application of digital technology to monitor the gold market. Businesses are required to comply with regulations on electronic invoicing in gold trading strictly.

SBV noted it would continue to monitor and deal with gold smuggling, speculation, or the exploitation of hoarding policies to drive up prices and cause market instability.

Gold prices in the domestic market have been rising steadily over the past two weeks. At its peak on May 10, the precious metal surged by VND3-4 million ($118-157) despite the sideways movement in the global market, reaching VND92.4 million ($3,630) per tael. This price is higher than the world price of VND20 million ($785.7) per tael. Following the directive from Deputy Prime Minister Le Minh Khai last weekend to inspect the gold market immediately, the price reversed to VND91.3 million ($3,586) per tael.

In view of international market fluctuations and regulatory measures to control the gold market in the coming time, the SBV advises citizens to trade cautiously in order to minimize risks.