Central bank seeks to stabilize gold market

To narrow the difference between local and global gold price, the State Bank of Vietnam has asked commercial banks and Saigon Jewelry Holding Company (SJC) to look for ways to increase local gold supply.Governor Nguyen Van Giau said the central bank had asked SJC to maximize its gold processing capacity to ensure local gold supply as well as encourage banks to sell gold to stabilize the gold price.

However, Giau said those were just supporting methods for the market which is to a large extent ridden by speculators, a problem that could not be solved in the immediate future.

Gold companies and banks imported a total seven tons of gold in November and the import quota ran out on November 27. The central bank had yet given new import quota for gold traders.

Saigon Jewelry Holding Company (SJC) on Wednesday quoted gold price at VND27.6 million
on buying and VND27.7 million on selling. Gold shops usually quoted higher selling price and lower buying price than SJC’s to avoid risk.

The global gold price by 7pm on Wednesday was US$1,141.4 an ounce. Even if a more expensive dollar at VND19,630 on the unofficial market is factored in, the local gold price was still about VND400,000 higher than the world price inclusive of import tax and fees.

The Saigon Times Daily

Tags: Vietnam gold market, Vietnam gold price