Gold auction cancelled again.

The State Bank of Vietnam has had to repeatedly cancel gold auctions because too few businesses participated.

The announcement was issued by the State Bank of Vietnam this afternoon.

This marks the second canceled gold auction. Previously, on April 22nd, the State Bank of Vietnam also canceled a gold auction due to insufficient registered bidders and failure to deposit the required funds.

Yesterday afternoon, the State Bank of Vietnam announced that it would hold a gold auction at 9:00 AM this morning with a total expected auction volume of 16,800 SJC gold bars.

However, the reference price for depositing gold is 82.3 million VND/ounce, which is 1.6 million VND/ounce higher than the auction price on April 23rd.

The minimum bidding volume for a single entity is 1,400 taels and the maximum is 2,000 taels.

Speaking to reporters, expert Ngo Tri Long stated that the main reason only one entity participated and the State Bank had to cancel the tender this morning was the unreasonable minimum bid volume and deposit price.

"Currently, there are 38 gold trading businesses nationwide, but very few have the financial capacity to purchase 1,400 taels of gold at once, equivalent to more than 110 billion VND."

"Besides, the deposit price is too high, especially considering the significant drop in world gold prices over the past three days," Mr. Long said.

On the other hand, according to gold experts, both individuals and investors are very cautious about buying gold as a safe haven at this time, as gold prices have risen too high. Currently, the world gold price is only at $2,317 per ounce, a decrease of $77 per ounce compared to the peak on April 12th.

Meanwhile, in the domestic market, the price of SJC gold bars rose again by late morning today, April 25th, after a slight decrease in the early morning, despite the sharp drop in world gold prices.

As of 12 PM on April 25th, the listed selling price of gold bars at SJC Company and Bao Tin Minh Chau was around 84 million VND per tael.

Meanwhile, the buying price of SJC gold bars was sharply reduced by 800,000 VND/ounce by gold trading businesses compared to the closing price this afternoon. At 12 noon today, most were at 81.7 million VND/ounce.

Compared to the converted world gold price (equivalent to 71 million VND/ounce), the price of SJC gold bars is currently more than 13 million VND/ounce higher.

According to Mr. Long, gold trading businesses and credit institutions must consider very carefully before participating in the bidding process.

"Businesses must consider profitability; if they win the bid, they must sell at a price higher than the winning bid price."

Meanwhile, according to the government 's directive, the goal is to stabilize the domestic gold market and bring the difference between domestic and world gold prices closer, but this goal has not been achieved after the first gold auction," Mr. Long commented.

Experts also believe that the State Bank of Vietnam's setting of excessively high deposit and floor prices has caused gold prices on the market to plummet, and gold businesses are hesitant to participate, especially before long holidays, due to weak purchasing power and the significant risk of a sharp drop in world gold prices during the holiday period.

"In the auction 11 years ago, the State Bank of Vietnam stipulated a minimum volume of 500 taels. This was manageable and created favorable conditions for gold businesses to participate, thereby increasing the supply of SJC gold bars to the market."

"In my opinion, the minimum volume requirement should also be applied in this bidding process. Otherwise, gold businesses will be very hesitant," said expert Tran Duy Phuong.

TB (according to Tuoi Tre newspaper)

Source: https://baohaiduong.vn/lai-huy-dau-thau-vang-379883.html