Government requires specialized inspection over gold market

The Government has requested an immediate inspection over gold bullion trading in an attempt to stabilize the domestic gold market that has witnessed a sudden price rise in recent days.

The Government Office has released a document on Deputy Prime Minister Le Minh Khai's conclusions at a recent meeting on the matter, one of which is his request for an urgent review and comprehensive assessment of gold bar production and trading of businesses, as well as gold market management solutions that the State Bank of Vietnam (SBV) has adopted in recent times.

He also required further efforts to narrow the widening gap between domestic and international gold prices to ensure that the domestic gold market operates stably, effectively, healthily, openly, transparently, and in accordance with the law.

Attention should be paid to avoiding ‘goldennisation’ of the economy as well as the negative impact on macroeconomic stability and national financial and monetary security, Khai stressed, urging relevant agencies to report the results to the Prime Minister in May at the latest.

The central bank recently held gold bullion auctions in a bid to keep the domestic gold market stably. However, the solution seemed not to prove effective, as gold bar prices have surged significantly.

Saigon Jewelry Company gold bar on Friday reached a new historic peak of VND92.4 million ($3,629.51) per tael (a tael equals 37.5 grams or 1.2 ounces). The precious metal has risen 25% since the beginning of the year.

On Saturday morning, the price plunged 1.19% to VND91.3 million ($3,586.72) per tael.