State Bank Governor explains why SJC gold price increases faster than world price

Governor of the State Bank of Vietnam Nguyen Thi Hong has just sent a report to the National Assembly on the implementation of the National Assembly's resolution on questioning in the banking sector. Regarding the task of managing the gold market , Governor Nguyen Thi Hong said that in 2024, the State Bank of Vietnam will synchronously deploy solutions to strengthen the management of the gold market, handling the high difference between domestic and international gold bar prices.

Governor of the State Bank of Vietnam Nguyen Thi Hong answers questions at the National Assembly

The State Bank of Vietnam has supplied gold bars to the market through gold bar auctions and direct gold bar sales, helping to significantly narrow the gap between domestic SJC gold bar prices and world gold prices.

The State Bank of Vietnam has coordinated with ministries and branches to inspect the gold trading activities of a number of units and enterprises to gradually rectify these activities. The inspection conclusions are being finalized.

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 3 - 5 million VND/tael (equivalent to about 5 - 7%).

Governor Nguyen Thi Hong also said that in the first months of 2025, world gold prices continuously broke previous records.

Domestically, the price of SJC gold bars moved in the same direction as the world price. By early April, 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%).

As of April 23, the difference between domestic and international SJC gold bar prices was about 14.48 million VND/tael (equivalent to about 13.62%).

Speculation, price inflation, and profiteering of gold prices are not excluded.

Ms. Hong said that the reason why the domestic SJC gold bar price increased at a faster rate than the world gold price and the difference between the domestic and world SJC gold bar prices increased sharply since the beginning of April was mainly due to the expectation that the world gold price would continue to increase in the context of the Trump administration's tariff policies expected to have a negative impact on the global economy. Along with that, the FED's unpredictable monetary policy roadmap; tense world geopolitical developments; and possible commodity price shocks that could arise, causing the demand for gold to increase.

In addition, according to Governor Nguyen Thi Hong, the supply of gold bars in the market has not increased since the beginning of 2025. According to Ms. Hong, the foreign exchange market and the gold market are relatively stable, so since the beginning of 2025, the State Bank has not had to intervene in the market.

In addition to the above reasons, Ms. Hong also said that it is not impossible that some businesses and individuals take advantage of market fluctuations to speculate, inflate prices, and profit.

Although domestic gold prices have increased, these fluctuations have not yet affected the management of monetary policy and macroeconomic stability. The State Bank will continue to closely monitor developments in the domestic and international gold market, coordinate with relevant agencies to strengthen management and take measures to stabilize the gold market.

The Governor of the State Bank also assessed that the gold market is still not truly stable and sustainable, still affected by psychological factors and expectations, and has potential risks affecting the currency and foreign exchange markets.

Ms. Hong said that in the coming time, she will promptly provide information on policies, solutions, and strategies for managing the gold market and stabilizing market sentiment. At the same time, she will urgently develop a Decree amending and supplementing a number of articles of Decree No. 24/2012 on managing gold trading activities according to simplified procedures.../.

According to Thanh Nien Newspaper

Source: https://thanhnien.vn/thong-doc-ngan-hang-nha-nuoc-noi-ly-do-gia-vang-sjc-tang-nhanh-hon-the-gioi-185250507092505534.htm

Source: https://baolongan.vn/thong-doc-ngan-hang-nha-nuoc-noi-ly-do-gia-vang-sjc-tang-nhanh-hon-the-gioi-a194793.html