The price of gold bars has remained constant in Vietnam at VND75 million ($3,076) per tael since the previous Thursday. This stability in the gold market comes after the State Bank of Vietnam (SBV) announced its intention to intervene in the market and consider maintaining its monopoly on gold supply.
Compared to the record high of VND80 million per tael reached on December 26, 2023, the current selling price of SJC gold bullion represents a 6.25% reduction. Despite this drop, the current price is still 10% higher than it was over a year ago. The selling price for gold rings has also stabilized at VND61.95-63 million per tael.
In Vietnam, the production of gold bars is tightly controlled by the government, with SJC, a state-owned company, holding the responsibility. However, SJC’s gold bar production machinery has been idle for years. The CEO of SJC, Le Thuy Hang, recently mentioned that the domestic supply of gold bars has not seen an increase since 2014, with some gold bars being redirected to create jewelry for export.
Deputy Governor of the central bank, Dao Minh Tu, affirmed in a press conference on January 3 that the SBV will ensure the domestic gold bullion price closely aligns with global market rates. He also stated that the SBV will reassess SJC’s performance in meeting its obligations.
Meanwhile, globally, the spot gold marginally rose by 0.1% to $2,044.57 early Friday but faces a weekly drop of about 0.9%. U.S. gold futures similarly edged up to $2,051.40, due to a rebound in the dollar and yields, with market sentiment shifting away from an imminent Fed rate cut.
Additional insight: The stabilization of gold prices in Vietnam is significant as it indicates the government’s role in controlling the gold market. The SBV’s intervention and consideration to maintain its monopoly on gold supply reflect the country’s effort to regulate the precious metal trade. The discrepancy between domestic gold prices and global rates also highlights the impact of government policies on the market, and how it can create differences in prices between Vietnam and the rest of the world. This difference has sparked discussions about the potential effects of government interventions on the economy and business operations, particularly in the precious metals sector.
