Vietnam central bank postpones gold bar auction

April 22, 2024 | 15:27

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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.

Vietnam central bank postpones gold bar auction

The SBV has confirmed that the gold bar auction will now take place on April 23 at 9am.

15 units are currently eligible to participate in the bidding, following their registration and deposits made to participate in the bidding session today.

Last week, the SBV announced its plan to auction the gold bars at a reference price of VND81.8 million ($3,186) per tael. The move was aimed at increasing the supply of the precious metal to stabilise the local gold market.

The auction had a minimum bid lot size of 100 taels with a 10 per cent deposit rate required. The minimum bid volume was 14 lots, or 1,400 taels, and the maximum was 20 lots, or 2,000 taels.

The last gold bar auction took place in 2013, when 76 gold bar auctions were organised. At that time, the SJC gold price was about VND4.2 million ($165) per tael, more expensive than the global gold price.

In light of recent developments in global and local markets, domestic gold prices have seen major fluctuations and sharp increases.

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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.

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The State Bank of Vietnam (SBV) will resume gold bar bidding after 11 years, aiming to increase the supply of gold to the market, promptly and immediately settle the high difference in domestic and international gold prices, thus ensuring the gold market operates in a safe and stable, healthy, open, transparent and effective manner in accordance with the Prime Minister's direction.

Gold market reforms paramount to stability

Investigations of gold trading firms are to take place on possible market manipulation amid soaring domestic prices, at the same time as the central bank announced it would resume sales of gold bullion for the first time in over a decade.

By Vy Bui

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