State Bank supplies 48,500 taels of gold to the market through 6 auctions

The State Bank of Vietnam (SBV) has just announced the results of the gold bullion auction held this morning, May 23rd.

Accordingly, 11 members won bids for 34 lots, equivalent to a total winning bid volume of 13,400 taels of gold. The lowest winning bid price was 88.72 million VND and the highest winning bid price was 88.73 million VND.

Previously, the State Bank of Vietnam (SBV) issued a notice regarding the organization of the SJC gold bar auction at 9:30 AM on May 23, 2024. The reference price for calculating the deposit price is 88.9 million VND/ounce, an increase of 300,000 VND compared to the May 21st auction of 86.6 million VND .

The remaining parameters are similar to previous sessions, specifically, the quantity of gold bars in one trading lot is 100 taels. The deposit rate is 10%. The minimum volume a member is allowed to bid on is 5 lots (equivalent to 500 taels).

The maximum volume a member is allowed to bid on is 40 lots (equivalent to 4,000 taels). The bidding price increment is 10,000 VND/tael, and the bidding volume increment is 1 lot (100 taels).

Thus, this marks the 6th successful auction by the State Bank of Vietnam, supplying a total of 49,400 SJC gold bars to the market.

In the most recent auction on May 21st, nine bidders won 79 lots, equivalent to a total volume of 7,900 taels of gold. The lowest and highest winning bid prices were both 89.42 million VND/tael.

On the market, prior to the auction, the prices of gold from domestic brands simultaneously adjusted sharply downwards. Specifically, the listed buying and selling price of SJC gold was 87.8-89.8 million VND/ounce, a decrease of 1.1 million VND compared to the previous closing session. The difference between the buying and selling price was 2 million VND/ounce.

During the 7th session of the National Assembly on the morning of May 23rd, in group 14, Representative Pham Van Hoa - a member of the National Assembly's Law Committee and a member of the Dong Thap Provincial National Assembly delegation - also mentioned the many shortcomings in the management of the gold market. According to Mr. Hoa, the State Bank's gold auctions are only a temporary solution because the price of gold has not decreased but tends to increase.

The delegate from Dong Thap province stated that the State Bank of Vietnam's monopoly on gold bars and gold imports should be abolished soon; and Government Decree 24 should be amended and supplemented to allow businesses to import raw gold and print gold bars under the strict management of the State Bank of Vietnam.

At the Hanoi delegation meeting, delegate Pham Duc An emphasized that Decree 24 has lost its historical value. According to the delegate, extreme caution is needed in gold management; investing in gold prices by chasing international gold prices could result in more losses than gains and may lead to a return to the gold hoarding phenomenon of the past.

"The fact that the State Bank of Vietnam's gold auctions are driving up prices is just a phenomenon in the initial stage. In the future, authorities need to refine appropriate methods and policies for managing gold to avoid gold hoarding," said delegate Pham Duc An .

Source: https://www.nguoiduatin.vn/nhnn-cung-ung-ra-thi-truong-48500-luong-vang-qua-6-phien-dau-thau-a664925.html