Governor Nguyen Thi Hong explains the reason why the price of SJC gold bars is higher than the world price

Governor Nguyen Thi Hong - Photo: GIA HAN

State Bank Governor Nguyen Thi Hong has just reported on the implementation of the National Assembly's resolution on questioning and the banking sector.

Notably, the report mentions the management of the gold market.

The reason why SJC gold bar price is higher than world price

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.

In which, gold bars were supplied 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.

At the same time, it has coordinated with relevant ministries and agencies to inspect gold trading activities of a number of units and enterprises to gradually rectify these activities.

Information on relevant inspection results has been transferred to competent authorities for verification, investigation, and handling according to regulations and is currently completing the inspection conclusion.

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

In the first months of 2025, the governor said that the world gold price continuously broke the previous record. The main reasons were 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 are stepping up their gold purchases to supplement foreign exchange reserves, which is also an important reason for the increase in gold prices.

US President Donald Trump's announcement of high reciprocal tariffs with countries around the world has negatively impacted investor sentiment and global economic growth, causing investors' cash flow to tend to flow into gold...

Domestically, the price of SJC gold bars fluctuates 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%), at times only about 1 million VND/tael (equivalent to about 1-2%) in early 2025.

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

Governor Nguyen Thi Hong also clarified the reasons why the domestic SJC gold bar price increased at a faster rate than the world gold price, and the difference in domestic and world SJC gold bar prices increased sharply since the beginning of April 2025.

Among them is the expectation that world gold prices will continue to increase in the context of the Trump administration's tariff policies expected to negatively impact the global economy.

The Fed's unpredictable monetary policy roadmap; tense global geopolitical developments; and possible commodity price shocks have increased demand for gold.

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 since the beginning of 2025, the State Bank has not had to intervene in the market.

In addition to the above causes, the governor pointed out that it is not possible to rule out the possibility that some businesses and individuals are taking advantage of market fluctuations to speculate, inflate prices, and profit.

Although domestic gold prices have increased, these fluctuations have not yet affected monetary policy management and macroeconomic stability.

The Governor stated that he 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 within his authority.

The market has fluctuated strongly recently - Illustration photo

Strengthen inspection of gold trading activities

Governor Nguyen Thi Hong stated 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.

In addition to solutions from the State Bank, to stabilize the gold market sustainably, there needs to be synchronous participation of ministries, branches and localities under the direction of the Government and the Prime Minister.

In the coming time, the governor emphasized that he will continue to do a good job of communication to promptly provide information on policies, solutions, and strategies for managing the gold market, stabilizing market psychology.

Urgently develop a decree amending and supplementing a number of articles of Decree 24/2012 according to simplified procedures.

At the same time, coordinate with relevant ministries and branches (Ministry of Public Security, Ministry of Industry and Trade, Ministry of Finance, etc.) to strengthen inspection and examination of the activities of gold trading enterprises, stores, agents distributing and trading gold bars and other entities participating in the market.

Promptly detect loopholes, inadequacies, and violations to strictly handle them according to authority and report to competent authorities for appropriate handling measures.

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Source: https://tuoitre.vn/thong-doc-nguyen-thi-hong-ly-giai-nguyen-nhan-gia-vang-mieng-sjc-chenh-cao-voi-the-gioi-20250507111615531.htm