State Bank announces 4th gold bar auction to stabilise prices

May 08, 2024 | 10:23

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The State Bank of Vietnam (SBV) on May 7 announced a morning auction for a total of 16,800 taels of gold in Hanoi on May 8.

State Bank announces 4th gold bar auction to stabilise prices, photo VNA

Hanoi - The State Bank of Vietnam (SBV) on May 7 announced a morning auction for a total of 16,800 taels of gold in Hanoi on May 8.

Accordingly, the quantity of SBV-produced SJC gold bars for one transaction lot is 100 taels. The deposit ratio when participating in the auction is 10%, and the reference price for calculating the deposit value is 85.3 million VND (3,412 USD) per tael. In addition, the minimum bidding volume for a member is seven lots, equivalent to 700 taels, and the maximum volume is 20 lots.

Each bidding member is only allowed to register one minimum price equal to or higher than the floor price announced by the central bank.

Three auctions of this kind have been held to date. Only the one on April 23 took place as planned, resulting in two winning members with a total volume of 34 lots (3,400 taels). The highest and lowest winning bid price logged were 82.33 million VND and 81.32 million VND per tael, respectively.

According to economic experts, the SBV's organisation of gold auctions is to bring a large amount of gold into circulation, contributing to stabilising supply and demand, and narrowing the gap between domestic and world gold prices as well as between buying and selling prices.

On May 7, the domestic gold price continued to soar. At 4:22 p.m., the listed SJC gold price was at 85.3 million VND/tael (buying) and 87.5 million VND/tael (selling), an increase of 1 million VND/tael in both buying and selling directions compared to the closing prices the day before.

State does not encourage gold bar trading: SBV

The State does not encourage the trading of gold bars, protect their prices, nor accept too large differences between domestic and global gold prices, and between SJC and other types of gold bars, said Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu.

Domestic gold prices set new record

Domestic gold prices increased on March 7 morning to a new record at 81.25 VND (3,290 USD) million per tael (one tael is equivalent to 1.33 ounces) for SJC gold bars and 68,8 million VND for gold rings, after global prices hit an all-time high of 2,152.09 USD per ounce a day earlier.

SBV to increase gold bar supply to stabilise domestic market

The State Bank of Vietnam (SBV) will increase the supply of gold bullion to handle the existing huge difference in domestic and world gold prices, SBV Deputy Governor Pham Thanh Ha told the press on April 12.

Vietnam central bank postpones gold bar auction

The State Bank of Vietnam was to auction 16,800 taels of gold bars, branded by Saigon Jewelery Company (SJC), on the morning of April 22. However, an hour before the bid opening time, the central bank announced it was postponing the auction as there were not enough members to participate in the bidding and transfer deposits.

Cautious state remains after gold auction

Despite high market interest, Vietnam’s inaugural gold auction left 13,400 taels unsold, with restrictive conditions and regulatory uncertainties dampening enthusiasm and complicating efforts to align domestic prices with global rates.

By VNA

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