Today, the State Bank released 35,000 taels of gold bars into the market, with 7,900 taels being acquired by banks and businesses at the 8th auction. The selling price for these gold bars was 89.42 million VND per quantity, which is 900,000 VND per tael higher than what Saigon Jewelry Company purchases from individuals and 2.9 million VND lower than the market price.
Despite the decrease in gold bar prices globally, businesses in Vietnam also decreased their prices this morning. SJC listed gold bar prices at 88.5 – 90.5 million VND, down 500,000 VND in both directions. The international market saw a drop in the price of gold bars, with each ounce converting to 2,415 USD, equivalent to 74.1 million VND per tael based on the Vietcombank exchange rate.
Over the past month, the State Bank has held 8 bidding sessions, with 5 successful sessions resulting in the release of a total of 35,000 taels of SJC gold bars into the market. By relaxing the conditions on the minimum and maximum bidding scale, the State Bank was able to increase participation in recent sessions and supply more gold to the market.
Although bidding is a temporary solution to increase supply and cool down gold prices, experts agree that the long-term goal should be to eliminate the gold bar monopoly in the market. The hope is that this will bring gold prices in Vietnam closer to global levels.
In conclusion, the State Bank’s efforts to release gold bars into the market have resulted in successful bidding sessions and a steady increase in supply. However, more sustainable solutions are needed to address the gold bar monopoly and bring prices in line with global standards.