State Bank Governor explains why domestic gold price is tens of millions of dong higher than world price

State Bank Governor Nguyen Thi Hong has just reported on the implementation of the National Assembly 's resolution on questioning the banking sector, which mentioned the management of the gold market.

According to Governor Nguyen Thi Hong, in 2024, the State Bank will synchronously deploy solutions to strengthen gold market management; handle the high difference between domestic and international gold bar prices according to the direction of the Government and the Prime Minister .

Specifically, it has supplied gold bars to the market through auctions and direct sales of gold bars, helping to significantly narrow the gap between domestic SJC gold bar prices and world gold prices. At the same time, it has coordinated with ministries and functional agencies to inspect gold trading activities to gradually rectify these activities.

As a result, by the end of 2024, the difference between domestic SJC gold bar prices and world prices has been controlled and maintained at a suitable range, from a difference of about 25% at the peak to about 5-7% (equivalent to about 3-5 million VND/tael).

In the first months of 2025, Governor Nguyen Thi Hong said that the world gold price continuously broke the previous record. The main reason was due to political instability, military conflicts, and increasing strategic competition on a global scale such as the prolonged Russia-Ukraine military conflict. Many central banks and investment funds increased their gold purchases to supplement foreign exchange reserves, which was also an important reason for the increase in gold prices. Next, US President Donald Trump announced high reciprocal tariffs with countries around the world, which negatively affected investor sentiment and world economic growth, causing investors' cash flow to tend to flow into gold...

Domestic gold price is nearly 15 million VND higher than world price

Domestically, the price of SJC gold bars fluctuated in the same direction as the world price. With synchronous management solutions, until early April 2025, the difference between domestic and world gold prices continued to be controlled and maintained at a range of about 3-5 million VND/tael (equivalent to about 5-7%), even at times only around 1 million VND/tael (equivalent to about 1-2%). However, by April 23, the difference between domestic and world SJC gold bar prices had a wide range of 13.62% (equivalent to ~14.48 million VND/tael).

The reason given by the female Governor is that people expect the world gold price to continue to increase in the context of political developments, tariffs, and many volatile markets. In addition to the above reasons, the Governor pointed out that it is not excluded that some businesses and individuals are taking advantage of the market fluctuations to speculate, inflate prices, and profit.

"The gold market is still not truly stable and sustainable, still affected by psychological factors, with potential risks affecting the currency and foreign exchange markets," the Governor said.

Although domestic gold prices have increased, these fluctuations have not yet affected the management of monetary policy and macroeconomic stability. The Governor said that the supply of gold bars on the market has not increased since the beginning of 2025, the foreign exchange market and the gold market have been relatively stable, so the State Bank has not had to intervene in the market since the beginning of 2025.

The Governor stated that he will continue to closely monitor developments in the domestic and international gold market, coordinate with relevant agencies, ministries, sectors and localities to strengthen management and take measures to stabilize the gold market within his authority. In particular, the Governor emphasized that he will promptly draft a decree amending and supplementing a number of articles of Decree 24/2012 according to simplified procedures.

Source: https://phunuvietnam.vn/thong-doc-ngan-hang-nha-nuoc-li-giai-viec-gia-vang-trong-nuoc-cao-hon-the-gioi-hang-chuc-trieu-dong-20250507141144195.htm