Nearly 17,000 taels of gold bars will be auctioned.

According to the announcement of the State Bank, the gold bar auction will start at 10am next Monday (April 22) at the State Foreign Exchange Reserve Management Department. This is to increase supply to the market in the context of soaring prices, the gap between domestic and world prices is 12-13 million VND per tael.

The expected bidding volume next week is 16,800 taels, each transaction lot is 100 taels and the deposit rate is 10%. The reference deposit price is 81.8 million VND per tael and the price step is 10,000 VND.

SJC gold bars closed the trading session on the afternoon of April 19 at 81.8 - 83.8 million VND per tael for buying and selling. Thus, compared to the market trading price, the floor price set by the regulatory agency is about 2 million VND lower, or 2.4%.

According to the operator, each enterprise is allowed to bid 1,400-2,000 taels, equivalent to 14-20 lots. They are only allowed to register a minimum price, equal to or higher than the floor price.

Basically, this bidding is a form of buying and selling in which the State Bank determines the partner, price and volume. Then, the participating units submit their bids. Currently, 15 units are eligible to participate in the bidding session next week.

The State Bank noted that in case it cannot buy precious metals from the international market due to insufficient supply from partners, the results will be canceled.

The world gold price has recently continuously broken the peak, leading to an increase in the domestic market. Compared to the world, gold bars are currently 12-13 million VND higher, 24K rings are about 7-8 million VND per tael, depending on the time.

The regulator does not release data on the country’s gold reserves. According to data provider CEIC, Vietnam’s reserves as of November 2023 were about $660 million, accounting for about 0.7% of the country’s total foreign exchange reserves.

HA (according to VnE)

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