Speaking to the press on December 29, 2023, Mr. Dao Xuan Tuan - Director of the Foreign Exchange Management Department, State Bank - affirmed that the State Bank (SBV) is ready to increase the supply of SJC gold bars to stabilize the market.

According to Mr. Tuan, the reason why the price of SJC gold bars has continuously increased recently is mainly due to psychological factors due to the increasing fluctuations of world gold prices.

However, through monitoring the market during the days when the price of SJC gold bars increased, the volume of transactions buying and selling SJC gold bars increased slightly but there was no phenomenon of people rushing to buy gold like in the previous period.

After increasing, the price of SJC gold bars has tended to decrease gradually since the afternoon of December 28, 2023. People are tending to net sell SJC gold bars.

“Gold is a valuable asset and its price often fluctuates strongly and unpredictably. Recently, the State Bank of Vietnam has also issued a warning message to people to be cautious when investing in gold,” said Mr. Tuan.

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Photo: Chi Hung.

According to the Director of the Foreign Exchange Management Department, the overarching goal of Decree 24 is to manage the gold market to limit the impact of gold price fluctuations on exchange rates, inflation and macroeconomic stability; and to limit the "goldenization" of the economy .

In the coming time, the State Bank will continue to coordinate with the Ministry of Public Security and relevant ministries and branches to strengthen inspection and examination of gold trading activities.

Currently, the State Bank of Vietnam is ready to implement a plan to intervene to stabilize the gold market by increasing the supply of SJC gold bars to the market. At the same time, the State Bank of Vietnam is summarizing and evaluating the implementation of Decree 24, in which it will propose appropriate solutions to manage the gold market.

Mr. Tuan also affirmed that since Decree 24 was issued, SJC is not allowed to produce gold bars but only processes gold bars hired by the State Bank, under the supervision of the State Bank.

Recently, the State Bank has consulted relevant ministries, branches, associations, businesses and experts on the summary report and assessment of Decree 24.

In January 2024, the State Bank will submit a summary report on Decree 24, including proposals to amend and supplement a number of gold market management mechanisms to suit the new market context.

“The State Bank of Vietnam always closely monitors developments in the gold market. We are ready to intervene to stabilize the market in order to limit the impact of gold price fluctuations on exchange rates, inflation and macroeconomic stability,” Mr. Dao Xuan Tuan affirmed.

After days of strong fluctuations, the price of gold bars at SJC closed the afternoon session on December 29 at 73-76 million VND (buy - sell), down 1.5 million VND/tael each way.

“The price of SJC gold will immediately drop to over 60 million VND/tael if the State Bank takes specific actions.” Only when there are specific measures will we know how much the price of gold will fall. Only when supply and demand are stable will the domestic gold price not be 15-20 million VND/tael higher than the world gold price, experts say.