Some gold trading companies were selling the precious metal at a mere VND76 million per tael. This sharp decline followed the issuance of a directive by the Prime Minister on the management of the gold market.
As of around 1:45 p.m., in Ho Chi Minh City, Phu Quy Group quoted the price of gold at VND74 million per tael for buying and at VND76.8 million per tael for selling, down VND4.3 million in the buying rate and VND3 million in the selling rate compared to this morning.
At the same time, in Hanoi, Bao Tin Minh Chau Company listed SJC gold at VND73 million per tael for purchase and VND76.8 million per tael for sale, a decrease of VND5.3 million in the buying rate and VND3 million in the selling rate compared to this morning.
While the SJC gold price is experiencing a downturn, the prices of 9999 gold rings are being adjusted upwards by gold trading businesses compared to the morning session. Specifically, SJC Company bought 9999 gold rings at VND63 million per tael and sold them at VND64.05 million per tael, marking an increase of VND50,000 for both buying and selling. Similarly, PNJ Company quotes gold prices at VND63.05 million per tael for buying and VND64.15 million per tael for selling, reflecting an additional increase of VND150,000 for both buying and selling.
In the global gold market, gold for immediate delivery on the Kitco exchange at 2 p.m. on December 28 (Vietnam time) was trading at US$2,086.1 an ounce, showing no fluctuations compared to this morning. After conversion at the USD/VND exchange rate at Vietcombank this morning, this price is equivalent to VND61.5 million per tael. It is lower than the domestic SJC gold price by approximately VND14.5 million, down from a gap of VND18.5 million per tael in the morning session. Additionally, it is lower than the price of 9999 gold rings by VND2.8 million per tael.
In light of the notable instability in the gold market, particularly the recent unpredictable actions of SJC gold, Prime Minister Pham Minh Chinh released Directive No.1426/CD-TTg on December 27, 2023. The directive was specifically addressed to the Governor of the State Bank of Vietnam (SBV) and the Ministers of Public Security, Industry and Trade, Finance, Justice, and Information and Communications, as well as the Inspector General of the Government Inspectorate of Vietnam, providing detailed instructions on how to effectively regulate the gold market.
To ensure stability and promote the healthy, efficient, and sustainable development of the gold market, the Prime Minister has instructed the SBV to closely monitor global and domestic gold price fluctuations to immediately implement measures in accordance with regulations to stabilize the gold market.
The directive underscores the proactive development of scenarios and plans to address fluctuations in global and domestic gold prices for the timely and effective application of authorized measures, contributing to socio-economic development, maintaining macroeconomic stability, and decisively preventing the "goldization" of the economy, adverse effects on exchange rates, interest rates, monetary markets, and foreign exchange, as well as ensuring financial safety and security at the national level.
The Prime Minister has also urged the SBV to swiftly implement effective measures for managing and regulating domestic gold bar prices by market principles to mitigate the negative impact on macroeconomic management caused by the recent high disparities between domestic gold bar prices and international gold prices. A report detailing the outcomes of these measures is expected to be submitted by January 2024.
Amidst recent movements in international and domestic gold prices, on December 28, the SBV officially addressed the situation in the gold market.
According to the SBV, from the beginning of December 2023 until now, global gold prices have risen sharply, surpassing the $2,000-an-ounce mark. Responding to the upward trajectory of international gold prices, domestic SJC gold bar prices have followed suit, at times peaking at over VND80 million per tael before experiencing a swift decrease. Despite strong fluctuations in international and domestic gold prices in recent days, both gold buying and selling volumes have witnessed a slight increase. However, the overall SJC gold bar market has not exhibited abnormal fluctuations, and there has been no observable trend of people rushing to buy gold when prices are high, as seen in previous periods.
The SBV indicates that the main factor behind the recent substantial surge in domestic SJC gold bar prices is predominantly psychological, driven by the continuous upward trend in international gold prices. Consequently, on days with sharp fluctuations in global gold prices, domestic SJC gold bar prices tend to soar at a swifter pace. The SBV underscores its commitment to closely monitor market dynamics and stands ready to implement intervention measures to stabilize the gold market.
The SBV also discloses that in January 2024, it will present a comprehensive report summarizing Decree No.24. This report will include proposals for amending and supplementing some regulations to manage the gold market, aligning them with the new market context.
