Continue to auction appropriate amount of gold to increase supply

On May 12, the State Bank worked with the Ho Chi Minh City People's Committee on coordinating the management of the gold market. The meeting took place after many instructions from the Government on solutions to manage, stabilize and inspect the gold market.

In the past two weeks, the State Bank has conducted bidding sessions with the aim of increasing supply to the market, cooling down the price of gold bars compared to the world . However, the market assessed the 5 bidding sessions as unsuccessful when the floor price was high, only 6,800 taels of gold were released compared to the bidding scale of 84,000 taels. The price of gold bars after the bidding sessions continuously increased rapidly.

At the meeting, the State Bank said it will continue to organize auctions to "sell gold bars to the market with volume and frequency appropriate to demand."

Saigon Jewelry Company (SJC) - a unit under the Ho Chi Minh City People's Committee - was also requested by the city's leaders to continue to immediately carry out market stabilization work. This unit was assigned to coordinate with the authorities to implement the direction of solutions to ensure security, order and safety in the market.

SJC is the leading business unit in the market with gold bar trading. In the two successful recent bids, this enterprise won the bid twice in a row with a maximum scale of 2,000 taels per session. According to VnExpress sources, SJC's 2,000 taels of gold winning bid were absorbed by the market on May 9.

In addition, this agency and the Ho Chi Minh City People's Committee increase the application of digital transformation technology in monitoring, managing, and the gold market. Enterprises are required to strictly implement regulations on electronic invoices in gold trading.

The management agency will inspect, monitor and handle gold smuggling, speculation, or taking advantage of the policy of hoarding goods to push up prices, causing instability and market insecurity.

Domestic gold prices have been rising steadily over the past two weeks. At its peak on May 10, the precious metal skyrocketed by VND3-4 million, even though the world price remained stable, to VND92.4 million per tael. This price is VND20 million per tael more expensive than the world price. After Deputy Prime Minister Le Minh Khai ordered an immediate inspection of the gold market last weekend, the price turned around and dropped to VND91.3 million per tael.

Faced with fluctuations in the international market and the upcoming moves to manage and control the gold market, the State Bank recommends that people be cautious when trading to minimize risks.

NH (according to VnExpress)

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