Gold market 'holds its breath' before news of amendment to Decree 24

Prices stand still as trading "slows"

After the State Bank of Vietnam (SBV) announced the amendment of Decree 24/2012 (Decree 24), intervened in the gold market, and did not accept the price of SJC gold bars being 20 million VND/tael higher than the world price as well as 10 million VND/tael higher than other types of gold..., the gold market became quiet. The trading atmosphere at gold shops in Ho Chi Minh City around Ben Thanh market, Tan Dinh market (District 1); An Dong market, Hoa Binh market, Nhieu Tam gold trading area (District 5)... on January 4 was quiet with few customers coming to trade.

SJC gold bar price remains high. Photo: T.XUAN

At Saigon Jewelry Company - SJC, the situation is similar, only a few customers come to buy gold rings, while the gold bar trading area is deserted. The second floor area, where large volumes of gold are traded, is also sparse. In the wholesale gold jewelry area, usually at this time in previous years, retailers would bring gold bars to exchange for gold rings, medals, and lucky charms to serve the New Year, the God of Wealth's day, which is quite bustling. However, this year is completely different, everything is quiet and deserted.

The gold trading atmosphere in the market is completely opposite to the excitement of the previous days, causing the gold price to become motionless, no longer dancing. After reducing the price of SJC gold bars by 500,000 VND per tael at the beginning of January 4, trading units almost did not change the price throughout the day. Saigon Jewelry Company - SJC bought at 72 million VND/tael, sold at 75 million VND/tael. Eximbank changed the price twice at the beginning of the day and then kept it at 72 million VND/tael for buying, and 75 million VND/tael for selling. Doji Group bought at 72 million VND, sold at 75 million VND/tael... Wholesale buying and selling prices between trading units were around 73.5 - 74.3 million VND/tael for buying and selling.

Meanwhile, the price of gold rings continuously changed with an upward trend from 100,000 - 200,000 VND per tael. SJC Company bought at 61.95 million VND, sold at 63.1 million VND/tael. Bao Tin Minh Chau Company bought at 62.48 million VND, sold at 63.58 million VND/tael... The price of gold rings increased following the international price, when the international precious metal increased by 6 USD/ounce, to 2,048 USD/ounce.

Domestic gold prices remain expensive, SJC gold bars are 14.6 million VND/tael higher than world prices, and gold rings are 2.6 million VND/tael higher. With the same quality of 4-number-9 gold, SJC gold bars are about 12 million VND/tael higher than rings.

Waiting for government intervention

The atmosphere of the gold market suddenly changed from hot to cold because the gold traders are waiting for information from the State Bank of Vietnam about market intervention. Mr. Nguyen Ngoc Trong, Director of New Partner Gold Company, admitted that the gold market is almost motionless from wholesale transactions between gold traders to the retail market. In fact, the State Bank has not given any specific signal to guide the market.

The implementation of the Prime Minister 's Official Dispatch 1426 on solutions for the gold market will take a long time to meet the requirements. However, the announcement by the State Bank in January will amend Decree 24, so "everyone is on the defensive". Because selling now is afraid of losing goods, buying is afraid of price risks. The market is in the stage of waiting for intervention solutions from the operator. When no one knows what the solution is, no one dares to "move".

According to Mr. Nguyen Ngoc Trong, because there are no transactions in the market, the price does not fluctuate. In case the world gold price increases or decreases sharply, the domestic price may not fluctuate much. However, businesses may widen the gap between buying and selling prices to a higher level to defend before the government has a specific solution for gold.

Mr. Huynh Trung Khanh, Vice President of the Vietnam Gold Trading Association, also said that the market is waiting to see what measures the State Bank will take to intervene in the market, especially what it will do to increase the supply of gold bars as well as amend Decree 24. The price of gold bars will decrease more or less depending on the supply of gold in the market. If the supply is still not improved much, the price of gold bars will increase again because the demand for gold in January before Tet is usually higher than usual./.

The price of SJC gold bars is about 5 million VND/tael higher than the world price and about 1.2 million VND/tael higher than gold rings, which is reasonable. But this only happens when the supply of gold bars on the market satisfies market demand.

Mr. Huynh Trung Khanh, Vice President of Vietnam Gold Business Association

The State Bank of Vietnam issues regulations on the organization and management of gold bar production.

On January 2, the State Bank of Vietnam issued Decision 02 amending and supplementing Decision 1623/QD-NHNN dated August 23, 2012 on the organization and management of gold bar production by the State Bank of Vietnam. Decision 02 amends and supplements a number of regulations related to the members of the Gold Bar Processing Supervision Team, and supplements the responsibilities of a number of units under the State Bank of Vietnam in the organization and management of gold bar production by the State Bank of Vietnam.

The Governor of the State Bank authorized the Director of the Internal Audit Department to sign a decision to establish a Supervisory Team of the State Bank to supervise the processing of gold bars from raw gold. The responsibility of the Administration Department in Ho Chi Minh City and the Treasury Issuance Department is to send a list of officers participating in the Supervisory Team of the State Bank of Vietnam on the processing of gold bars from raw gold to the Internal Audit Department. At the same time, perform tasks according to regulations, regulations on supervising the processing of SJC gold bars from raw gold of the State Bank and the Regulations on managing gold bar production molds, gold bar stamping machines and supervising the processing of SJC gold bars from raw gold not of the State Bank.

The Internal Audit Department is responsible for taking the lead in developing and submitting to the Governor for approval the Regulations on supervising the processing of SJC gold bars from raw gold of the State Bank. Issuing a decision to establish the Supervisory Team for processing gold bars from raw gold of the State Bank. Developing a mechanism to supervise and inspect the supervision of the processing of SJC gold bars by the Supervisory Team for processing gold bars from raw gold of the State Bank. Decision 02 takes effect from January 2.

According to Thanh Nien

Source: https://thanhnien.vn/thi-truong-vang-nin-tho-truoc-thong-tin-sua-nghi-dinh-24-185240104235412631.htm

Source: https://baolongan.vn/thi-truong-vang-nin-tho-truoc-thong-tin-sua-nghi-dinh-24-a169192.html