Central bank asks for close supervision of gold market

The State Bank of Vietnam (SBV) said that it has directed its branches in provinces and cities to closely monitor the developments of the local gold market, and at gold trading locations, and report to the central bank any case where people queue to buy gold.

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The SBV stated that following the Prime Minister’s directive and the policy of increasing the supply of gold bars to the market through auctions, since April 19, the central bank has conducted six gold bullion auctions and their results were publicised on its portal.

Three of the six auctions of SJC-branded gold bars were successful with a total winning bid volume of 14,900 taels.

Notably, the session on May 14 saw eight bidders buying 8,100 taels of SJC-branded gold bullion out of the 16,800 that the SBV offered for sale. The highest and lowest winning bid prices logged were 87.73 million VND and 87.72 million VND per tael, respectively.

The state-owned Saigon Jewelry JSC (SJC) managed by the People's Committee of Ho Chi Minh City, bought a total volume of 2,000 taels per session and immediately sold them in the market.

The central bank said it will continue to hold more gold bar auctions in the coming time, with the next session slated for May 16.

The price of SJC gold has fluctuated significantly in recent days, reaching 92.5 million VND per tael on May 10. It ranged from 89.2 to 90 million VND per tael at 3pm on May 15.

SBV said that the auction aims to ensure stable, transparent, and effective operation of the domestic gold market. It has warned locals to stay prudent when trading gold amidst the world’s volatile market./.

VNA