Gold price remains stable

By Quynh Trang   January 6, 2024 | 08:24 pm PT
The price of gold bars has been consistent at VND75 million ($3,076) per tael since last Thursday, following the central bank's declaration of market intervention and monopoly consideration.
A person holds gold bars at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

A person holds gold bars at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Compared to the record high of VND80 million per tael reached on December 26, 2023, the current selling price of SJC gold bullion represents a 6.25% reduction. A tael is equivalent to 37.5 grams or 1.2 ounces.

Despite this drop, the current price is still 10% higher than it was over a year ago.

Gold ring price has also stabilized at VND61.95-63 million per tael.

This stability follows the announcement by the State Bank of Vietnam (SBV) that it will intervene in the market and consider maintaining its monopoly on gold supply.

In Vietnam, the production of gold bars is stringently controlled by the government, with SJC, a state-owned company, bearing the responsibility. However, SJC's gold bar production machinery has been idle for years.

SJC CEO Le Thuy Hang recently said the domestic supply of gold bars hasn't seen an increase since 2014, with some gold bars being diverted to create jewelry for export.

Dao Minh Tu, Deputy Governor of the central bank, assured in a press conference on Jan. 3 that the SBV will ensure the domestic gold bullion price aligns closely with global market rates. He also stated that the SBV will reevaluate SJC's performance in meeting its obligations.

During the weekend, Vietnam's gold prices were about 20% higher than global rates.

Globally, spot gold marginally rose by 0.1% to $2,044.57 early Friday, but faces a weekly drop of about 0.9%. U.S. gold futures similarly edged up to $2,051.40, according to financial data platform DailyFX.

This downturn is attributed to a rebound in the dollar and yields, with market sentiment shifting away from an imminent Fed rate cut.

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