Stabilising the domestic gold market to stop mercenary speculation due to gold price fluctuation is the immediate goal of the State Bank of Vietnam (SBV), says Governor Nguyen Van Binh.
Legal documents and Decree 24 on the management of gold trading activities emphasised the goal of stabilising the market, Binh said at the May 5 Q&A session on TV Channel VTV1 .
In regard to the broad difference between domestic and global gold prices, the Governor said the gap between global and domestic prices is able to be different.
For example, thanks to the first five gold auctions held by the SBV, domestic gold prices were down to 42-43 million VND per tael from 46-47 million VND per tael, narrowing the difference between global and domestic prices to 2.5-3 million VND from 6 million VND per tael, he said.
However, in mid-April, the global gold price fell dramatically, creating a wider gap.
In the past, the domestic gold market was normally adjusted shortly after any dramatic global dips, sparking a buying spree among residents.
However, the promulgation of the Government’s decree and subsequent gold ingot sales stopped market manipulation, keeping domestic gold prices comparatively stable despite sharp fluctuations, said the Governor.
The central bank began gold auctions in late March in an attempt to cool down the domestic gold market and narrow the price gap. To date 13 auctions have been held.
Domestic and global gold prices will come closer together in the mid- and long-term if Vietnam stabilises its domestic gold market and efforts to stabilise its macro-economy continue, Binh affirmed.-VNA
