Will domestic gold prices fall sharply following the Prime Minister's request?

While the global gold market was closed over the weekend, domestic gold prices fluctuated sharply following the Prime Minister's directive.

Currently, the price of gold in Vietnam is significantly higher than the world price - Photo: THANH HIEP

Quickly bring the price difference between domestic and international gold down to 1-2 %.

At the Government's Standing Committee meeting on gold market management late yesterday, Prime Minister Pham Minh Chinh stated that several issues have emerged recently, such as the large price difference between domestic and international gold, and some actions by businesses participating in the gold market that are manipulative, hoarding, and inflating prices.

For the time being, the Prime Minister has instructed the State Bank of Vietnam to strengthen management and quickly bring the price difference between domestic and international gold down to only about 1-2%, and not allow it to exceed 10% as it has been recently.

At the same time, solutions are needed to increase supply and reduce demand; to strictly manage and control, strengthen inspection and supervision, and severely punish smuggling; and to prevent manipulation, hoarding, price gouging, and market disruption.

Waiting for domestic gold prices to fall.

World gold prices ended the trading week at a relatively high level - Screenshot

Over the weekend, the world gold price ended the trading week at $3,358.9 per ounce. Converted using the exchange rate listed at banks, the world gold price is equivalent to approximately 105.8 million VND per tael (1 tael = 37.8 grams).

Domestically, the price of SJC gold bars closed the trading week at 120.5 million VND/ounce (selling price) and 118.5 million VND/ounce (buying price).

The price of SJC gold rings weighing 1-5 taels is listed at 112.5 - 115.5 million VND/tael (buy - sell).

At Bao Tin Minh Chau Company, the selling price of 9999 gold rings is 118.5 million VND/ounce, and the buying price is 115 million VND/ounce.

Compared to the converted world gold price, the price of SJC gold bars is currently 14.7 million VND/ounce higher, equivalent to nearly 14%. Meanwhile, the price of 9999 gold rings is 12.7 million VND/ounce higher.

Recently, the price of SJC gold bars has sometimes been as high as 18 million VND/ounce higher than the world gold price. This is a very large difference.

Following the Prime Minister's request for the State Bank of Vietnam to strengthen management and quickly reduce the price difference between domestic and international gold to only about 1-2%, the domestic gold market today, May 25th, has been significantly impacted, according to Tuoi Tre Online .

Business circles believe that if the directives are followed correctly, the price of gold in Vietnam will have to fall to around 107 million VND/ounce, a decrease of about 13 million VND/ounce compared to the current level.

Across various gold-related forums, this topic has been hotly debated. The selling price of gold on the market has decreased by approximately 1.8 million VND/ounce compared to yesterday afternoon's price, settling around 118.7 million VND/ounce. On the buying side, some shops are limiting purchases to observe the situation.

Many people also hope that domestic gold prices will fall significantly, as the current large price difference poses a risk to buyers.

Back to the topic

PINK LIGHT

Source: https://tuoitre.vn/gia-vang-trong-nuoc-se-giam-manh-sau-yeu-cau-cua-thu-tuong-20250525125026322.htm