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This morning (April 19), the State Bank of Vietnam (SBV) held a press conference on the results of banking operations in the first quarter of 2024.
Regarding the issue of gold bar auction, Mr. Dao Xuan Tuan (Director of the Foreign Exchange Management Department of the State Bank of Vietnam) stressed that the increase in gold supply under the direction of the Prime Minister of Government, the State Bank of Vietnam has carefully prepared for the gold bar auction.
“This is the gold that the State Bank of Vietnam has produced and is in stock. In the afternoon today (April 19), the State Bank of Vietnam will announce a policy of auction to 15 qualified units to participate in the gold auction. The auctions will take place on Monday next week (April 22)”, Mr. Tuan said at a press conference on the results of banking operations in the first quarter of 2024
Regarding the gold market, at the press conference this morning, Deputy Governor Dao Minh Tu said that the world gold price is currently very high (over 2,400 USD/ounce on the morning of April 19). According to Mr. Tu, the increase in gold prices is due to psychological factors related to the situation of a possible expansion of the war, particularly after the Israel-Iran conflict. In addition, oil prices have also increased in the recent past. “These are the common issues of the world economic situation, of course, it is inevitable impact on the situation in the country”, Mr. Tu said.
The Deputy Governor added that the SBV is preparing to auction gold bars to provide additional gold supply to the market. The auction will be conducted in accordance with the provisions of Decree 24. In addition, the SBV has also summed up Decree 24 and has identified and assessed by the ministries and branches, the SBV has proposed a report to the Government to give a viewpoint on gold market management in the coming time, so that in line with the overall development of the economy. Decree 24 has many aspects that are no longer suitable for reality, according to Mr. Tu.
The statements of SBV leaders were made in the context of recent continuous increases in world gold prices, leading to an increase in domestic prices. Each tael of SJC gold bars is traded around 84-85 million dong, an increase of nearly 15% compared to the beginning of the year.
The auction of SJC gold bars is expected to increase gold supply in the market and cool down gold prices in the coming time. This is also the first time that the State Bank of Vietnam has re-auctioned gold bars in 11 years. Previously, in 2013, the State Bank of Vietnam conducted 76 auctions, offering 1,932,000 taels of gold to the market and successfully selling 1,819,000 taels, equivalent to 69.9 tons of gold. Of which, more than 30 tons were purchased by credit institutions to clear gold, only about 40 tons of gold were sold to the market.
