Central bank cancels another gold auction

Only one business registered to participate the auction. The central bank has invited businesses to join three auctions this week but it canceled two of them due to low participation.

In the only successful auction on Tuesday, only two out of 11 participants made bids, and they bought 20% of the 16,800 taels the central bank offered to sell. A tael equals 37.5 grams or 1.2 ounces.

A former director of a large gold distributor, who asked not be identified, said that demand for gold is now steady after surging in recent weeks.

Businesses therefore are reluctant to make bids as the central bank’s starting prices are high, he told VnExpress.

Saigon Jewelry Company gold bar price was steady at VND84 million per tael Thursday afternoon.

In the auction Tuesday prices start at VND81.30 million per tael, and the two buyers paid VND81.32-81.33 million for a total of 3,400 taels.

The last time the central bank sold gold bars was in 2013 when over 1.8 million taels were offloaded, with a total of 76 auctions.