After reaching the milestone of VND82 million per tael in the morning, SJC gold took a downturn on the afternoon of March 21, dropping over VND1 million per tael following news of the State Bank of Vietnam's proposal to end the monopoly on gold bar production.
At around 2:30 p.m. in Ho Chi Minh City, PNJ Company listed SJC gold at VND78.9 million per tael for buying and VND80.95 million per tael for selling, marking a decrease of VND1 million per tael compared to this morning. Meanwhile, in Hanoi, SJC lowered gold prices by VND1.2 million per tael in both buying and selling rates, trading at VND78.8 million per tael for buying and VND80.82 million per tael for selling.
While SJC gold experienced a significant decline, 9999 gold rings remained at their highest level this morning, having increased by between VND1.1 million and over VND1.5 million per tael, depending on the enterprise. SJC Company bought 9999 gold rings at VND68.6 million per tael and sold them at VND69.9 million per tael. PNJ Company traded at VND68.7 million per tael for buying and VND69.9 million per tael for selling. Bao Tin Minh Chau Company listed their prices at VND69.43 million per tael for buying and VND70.73 million per tael for selling.
In the global gold market, the spot gold price on the Kitco exchange surged to US$2,208.6 an ounce on the morning of March 21 (Vietnam time), marking an increase of over $4 compared to yesterday. This price level, when converted, equates to nearly VND66.4 million per tael, lower than SJC gold by about VND14.4 million per tael, compared to this morning's rate of VND15.7 million per tael, and is also lower than the price of 9999 gold rings by VND3.5-4.3 million per tael.
During a meeting chaired by Deputy Prime Minister Le Minh Khai with the State Bank of Vietnam (SBV) and various ministries and sectors regarding the implementation of measures to manage the gold market, SBV Deputy Governor Pham Thanh Ha stated that there is no longer the instability seen in previous periods. He noted that the phenomenon of goldization has been curbed, and fluctuations in gold prices have had minimal impact on the official exchange rate, the foreign exchange market, and the domestic macro-economy. While the State monopoly on gold bar production is considered a crucial measure for tight control of gold supply, SBV has not conducted auctions to increase the supply of gold bars on the market since 2014. However, after nearly a decade, the limited supply of SJC gold bars in the market may be one of the reasons why the price gap between SJC gold bars and international prices remains high.
As a result, the SBV proposes a revision to the gold bar production plan, suggesting the removal of the State monopoly mechanism and the issuance of production licenses to qualifying enterprises. Furthermore, the SBV will regulate production quotas for gold bars according to each period, in alignment with monetary policy objectives and macroeconomic stability. This shift away from the State monopoly on gold bar production would be in line with international practices, boosting the supply of gold bars in the market and potentially resolving price differentials.
