Hanoi, April 16, 2024 – The State Bank of Vietnam has announced the resumption of gold bar bidding after an 11-year hiatus, as reported by the Vietnam News Agency on Tuesday.
This move comes as part of efforts to bolster the supply of gold in the market and address the significant disparity between domestic and international gold prices.
According to statements from the central bank, the decision to restart gold bar bidding is aimed at promptly addressing the widening gap between domestic and international gold prices. The move is expected to facilitate the efficient circulation of gold within the Vietnamese market and ensure greater stability in pricing mechanisms.
Twenty-six units, comprising commercial banks and gold businesses, have established trading relationships with the central bank for gold bar transactions. Among them, 15 have been deemed eligible to participate in the bidding process. The gold bars offered for bidding are of the SJC variety, a widely recognized standard in the Vietnamese market.
Vietnam’s last gold bidding session was held on March 28, 2013, marking the beginning of a series of 76 bidding sessions conducted throughout that year. During this period, approximately 1,819,900 out of 1,932,000 taels of gold bullion were successfully sold, reflecting the demand for gold in the Vietnamese market at the time.
The decision to resume gold bar bidding comes against the backdrop of a sharp increase in gold prices in Vietnam, exacerbating the disparity with global prices. Vietnamese Prime Minister Pham Minh Chinh has underscored the importance of implementing timely and effective measures to regulate the gold market in accordance with established regulations.
Local media reported that Vietnam’s gold bullion price reached an all-time high of 85.5 million Vietnamese dong (approximately $33,800 USD) on Monday, highlighting the urgency of addressing pricing disparities and restoring stability to the market.
The resumption of gold bar bidding by the State Bank of Vietnam is expected to have significant implications for the domestic gold market, providing a regulated platform for the trading of gold bars and enhancing transparency in pricing mechanisms. By facilitating greater participation from commercial banks and gold businesses, the central bank aims to foster a more dynamic and efficient gold market ecosystem.
Moving forward, stakeholders will closely monitor the outcomes of the bidding process and its impact on gold prices and market dynamics. The resumption of gold bar bidding signals a proactive approach by Vietnamese authorities to address the challenges posed by fluctuating gold prices and ensure the resilience and stability of the domestic gold market in the years ahead.
