Plain gold rings of Bảo Tín Minh Châu. The State Bank of Việt Nam will implement a number of solutions to stabilise the domestic gold market. — VNA/VNS Photo Diêp Anh
The State Bank of Vietnam will increase the supply of gold bullion to handle the existing huge difference in domestic and world gold prices, Deputy Governor Phạm Thanh Hà told the press on Friday.
This is one of the bold solutions raised by the SBV after the Prime Minister Phạm Minh Chính asked for prompt efforts to be taken to stabilise the domestic gold market, ensuring its transparent, healthy and efficient operation.
For the gold jewellery segment, the SBV will strive to ensure raw materials for production and export.
In addition, the SBV will increase cooperation with relevant ministries and agencies to ask enterprises to issue e-invoices for every transaction which will help improve transparency of the domestic gold market as well as the management efficiency, Hà said.
The supervision will also be enhanced to prevent smuggling of gold, speculation and gold price manipulation.
Inspection on the gold business of enterprises and credit institutions will be carried out this month, he stressed.
The SBV has proposed amendments to the Decree 24 on gold business management towards ensuring on-track development of the domestic gold market and efficiency in management.
The domestic gold prices have increased strongly recently to set new records, widening the gap with the global prices.
SJC gold prices were listed at VNĐ82.8 million (US$3,310) for buying and VNĐ84.8 million for selling per tael at 3pm yesterday to set new records, an increase VNĐ900,000 per tael compared to Thursday trading session.
SJC gold buying prices have increased by 17.5 per cent and selling prices by 15.4 per cent from the beginning of this year.
At Bảo Tín Minh Châu, plain gold rings are listed at VNĐ75.78 for buying and VNĐ77.68 per for selling per tael, an increase by VNĐ1.3 million per tael over Thursday closing.
On Kitco.com, gold spot price increased 1.17 per cent to $2,399.20 per tael as of 3.05pm (local time). The bullion hit an all-time high for an eighth straight session on Tuesday
Bullion prices hit an all-time high for an eighth straight session on Tuesday after softer-than-expected US producer prices data boosted hope for US rate cuts this year. Year on year, gold is up around 16 per cent as central banks are stocking gold, seeing gold as a safe haven during time of economic and international turmoil.
At a recent meeting about gold market, the PM asked the State Bank to promptly implement solutions effectively manage the gold market, especially handling the existing huge gaps between SJC gold prices with the world prices.
The focus will be on ensuring supply of raw materials for the production and gold bullion and jewellery and increasing the export of gold jewellery.
The PM also asked inspections to be enhanced on gold business to prevent smuggling, speculation and price manipulation. Violations must be strictly handled. — VNS