World gold price soars, domestic price stabilizes after Prime Minister's direction

Specifically, at 9:30 this morning (March 21), the domestic gold price was listed by Doji at 79.9 - 81.9 million VND/tael (buy - sell), an increase of 600,000 VND/tael compared to early yesterday morning.

Meanwhile, the gold price at SJC was listed at 79.8 - 81.8 million VND/tael (buy - sell), an increase of 400,000 VND/tael.

This development is somewhat contrary to the previous period. With previous increases, when the world gold price continuously broke the peak, domestic gold immediately increased rapidly. However, in today's trading session, although the world gold price approached the threshold of 2,200 USD/ounce, the most expensive of all time, the domestic gold price still did not exceed the threshold of 82 million VND/tael.

Thus, the domestic gold market has somewhat stabilized after the Prime Minister 's latest directive.

Domestic gold prices are stable. (Photo: Minh Duc). — Domestic gold prices are stable. (Photo: Minh Duc)

Previously, Prime Minister Pham Minh Chinh signed Official Dispatch No. 22/CD-TTg dated March 20, 2024 requesting to strengthen measures to manage the gold market.

In particular, the Prime Minister requested the State Bank to coordinate with relevant agencies to immediately conduct inspections and examinations of the gold market, the activities of gold trading enterprises, stores, agents distributing and trading gold bars and other entities participating in the market, promptly detecting loopholes and inadequacies for handling.

At the same time, strictly handle violations according to the law, especially acts of gold smuggling across the border, profiteering, speculation, manipulation, taking advantage of price-pushing policies by organizations and individuals... causing instability and insecurity in the gold market. In case of detecting gold trading activities with signs of violating the law, promptly transfer documents and records to competent authorities for strict, public and transparent handling according to the law; report to the Prime Minister the implementation results in March 2024.

The Prime Minister also assigned the Ministry of Public Security to preside over and coordinate with the State Bank and relevant agencies to promptly implement measures according to regulations to strictly handle violations of the law related to the gold market and gold trading activities.

Recently, the Prime Minister issued Official Dispatch No. 1426/CD-TTg dated December 27, 2023 on solutions to manage the gold market; the Government issued Resolution No. 20/NQ-CP dated February 5, 2024 directing the State Bank of Vietnam to closely monitor developments in world and domestic gold prices to promptly implement measures to stabilize the gold market. Government leaders have issued many documents directing and urging the State Bank and relevant agencies to urgently implement measures to manage and supervise gold market activities.

However, according to the Prime Minister, the world and domestic gold markets are complicated, domestic gold prices fluctuate strongly, affecting the stability and safety of the financial and monetary markets and social psychology.

Therefore, it is necessary to further strengthen management measures and develop a safe, healthy, effective and sustainable gold market.

In the world market, the price of gold today continued to climb to a new peak of 2,197 USD/ounce, an increase of 40 USD/ounce compared to early this morning. With this price, gold has set a new peak of the most expensive price in history.

Gold prices soared as the Fed decided to keep interest rates steady at this meeting, while also indicating the possibility of cutting interest rates by 3/4 percentage point by the end of 2024.

The fall in the US Dollar Index after the Fed's decision increased the appeal of gold to overseas buyers, while the yield on 10-year Treasury bonds also fell, reducing the opportunity cost of holding gold.

The Fed has been reluctant to give a precise timetable for a rate cut, although it has continued to signal that it will cut rates. Its monetary policy statement also struck an upbeat tone about the health of the economy. In its statement, the Fed said the economy remains strong, with strong job growth and low unemployment.

TN (according to VTC News)

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