Gold auction on 22.4

Responding to the press on this issue at the regular press conference of the first quarter of 2024 of the State Bank today, April 19, Mr. Dao Xuan Tuan, Director of the Foreign Exchange Management Department (State Bank), said that implementing the direction of the Prime Minister, in the past time, the State Bank has made very careful preparations for the bidding of SJC gold bars.

"The State Bank has produced and has gold in stock. This afternoon, the State Bank will announce the bidding policy to 15 credit institutions and enterprises that are eligible to participate in the bidding. The State Bank will prepare the work to conduct the bidding as early as next Monday," Mr. Tuan informed.

Many experts believe that, right after the first auction, domestic gold prices will certainly "cool down".

Regarding the policy for the gold market in the coming time, Mr. Tuan said, the State Bank has reported to the Prime Minister on the summary of Decree 24 on the management of gold trading activities.

The summary of Decree 24 that the State Bank submitted to the Prime Minister has been consulted with ministries and branches. The State Bank submitted to the Prime Minister the policy of amending Decree 24.

Gold fluctuations on April 19: Gold price drops before gold bar auction day

"Evaluating the positive aspects of Decree 24 over the past time, we see that the role of Decree 24 has been effective. However, it is time to review it to suit the current conditions, especially focusing on discussing the State's elimination of the monopoly on gold bars, adding many other gold brands, not just the SJC gold brand," said the Director of the Foreign Exchange Management Department.

Consider for many businesses to import raw gold?

In addition to increasing the supply of gold bars, Mr. Tuan also mentioned considering allowing gold jewelry manufacturing enterprises to import raw gold, especially for enterprises that the Prime Minister has directed, which are manufacturing and exporting enterprises.

Specifically, for manufacturing and exporting enterprises, Decree 24 currently creates favorable conditions; for enterprises with processing and manufacturing contracts with foreign countries, the import of raw gold is being carried out without any problems.

For gold jewelry and fine art enterprises in general, the State Bank has currently requested that State Bank branches grasp this content, synthesize and re-evaluate it for the State Bank to consider.

Regarding the gold auction, speaking with Thanh Nien , gold expert Tran Duy Phuong said that the current Vietnamese gold market is quite small, not as large as before. Therefore, in the upcoming gold auction, the State Bank will supply the market with a total of about 20,000 taels of gold, which is enough to "cool down" the market.

"In each auction, the State Bank will release at most 5,000 taels of gold. Thus, it only takes 4 sessions for the market to gradually stabilize, which can significantly reduce the difference between Vietnam's gold price and the world's gold price.

The difference of 1 - 2 million VND/tael for gold rings and about 7 million VND/tael for SJC gold is considered a success," said Mr. Phuong.

Mr. Huynh Trung Khanh, Vice President of the Vietnam Gold Trading Association, said: "Just releasing 5,000 - 10,000 taels of gold to the market each session is enough to cool down the market. When the State Bank bids, the price of SJC gold bars will drop sharply."

However, when Thanh Nien asked how much total gold supply is needed to stabilize supply and demand, Mr. Khanh said: "It is very difficult to predict how much gold bars are needed each week, because the State Bank often organizes weekly auctions. The next developments will have to wait and see how prices fluctuate in the market after the first auction."

According to Mr. Khanh, in the long term, the State Bank needs to increase supply to the market by allowing businesses to import raw gold.

Mr. Phuong also expressed his opinion that the State Bank should grant gold import quotas to gold businesses. Gold businesses will proactively import under the supervision of the State Bank. This import should be considered as increasing the gold reserves for the State Bank.

Source link: https://thanhnien.vn/dau-thau-vang-vao-ngay-224-18524041913145891.htm