In recent days, the price of gold in both the international and domestic markets has been constantly fluctuating, with the main trend being an increase. Many price peaks have been set, at times approaching the 3,000 USD/ounce mark - far exceeding the expectations of many experts and investors; meanwhile, domestically, both SJC gold rings and gold bars are also at high levels.
Currently, at 4:30 p.m. Vietnam time, the international gold price is trading at 2,902.75 USD/ounce, up 0.65% compared to the same time yesterday. Converted at the bank exchange rate, equivalent to 89.73 million VND/tael. At the same time, the SJC gold price is listed on the domestic market at 87.6 - 90.6 million VND/tael (buy - sell), up 300 thousand VND/tael in both buying and selling directions; while the previous day the gold price reached 93.1 million VND/tael.
In response to this situation, the State Bank representative has issued a written response. According to the State Bank, although the domestic gold price has increased following the general world trend, this increase is not as fast as the international gold price. In fact, after the State Bank intervened to sell gold directly to stabilize the market, the world gold price continued to increase faster than the domestic gold bar price.
According to the 2012 Law on Prices and the 2023 revised Law on Prices, gold is not classified as an essential commodity and is not included in the price stabilization list. Therefore, the State Bank does not control gold prices but only intervenes when necessary to keep the market operating stably, avoiding speculation and unusual fluctuations that negatively impact the economy.
“Gold prices have been increasing all over the world, not just in Vietnam. Since the State Bank intervened to sell gold directly, the world gold price has increased faster than the domestic gold bar price. According to the law, gold is not an essential commodity and is not on the list of goods and services for price stabilization,” the State Bank emphasized.
According to the State Bank, the current gold buying and selling prices are listed and decided by credit institutions and gold trading enterprises. In fact, even central banks around the world do not directly manage gold prices but let the market self-regulate according to supply and demand.
Therefore, the State Bank only takes intervention measures when the market shows signs of instability, and does not directly intervene in gold prices. This helps ensure that the gold market operates according to market rules, while avoiding causing unwanted impacts on the economy and financial system.
Commenting on this move by the State Bank, Economic Expert Associate Professor Dr. Ngo Tri Long said that the fluctuations in the gold market since after the Lunar New Year until now may have stemmed from a number of reasons such as: the difference in domestic supply and demand, decreased purchasing demand; the influence of world gold prices, exchange rate fluctuations and even the State Bank's market regulation policy...
Usually after Tet, people's demand for gold storage decreases sharply, while the supply from investors increases, causing domestic gold prices to no longer remain high compared to world gold prices. The recent sharp increase in world gold prices is due to concerns about inflation in the US, geopolitical tensions and the need for safe havens. In the context of strong fluctuations in world gold prices, previously, SJC gold bars often had a difference of about 10 million VND/tael higher than the converted world gold price. But now, this gap is gradually narrowing, sometimes even lower, proving that the State Bank may have taken regulatory action to stabilize the gold market.
The fact that the domestic gold price is sometimes lower than the international gold price after conversion is an unusual sign, according to expert Truong Vi Tuan, Giavang.net, this shows that domestic gold has not responded to the high increase in world gold. Statistics from Giavang.net show that from last Tuesday until now, the domestic gold price is still lower than the world gold price after conversion plus taxes and fees, the difference fluctuates from 1 million VND/tael or less.
In fact, if people have a lot of money, their mentality is usually to hold gold, real estate or other valuable assets rather than keep cash. Therefore, the trend of buying gold as an asset is quite common in the investment method of many families; especially the elderly or middle-aged. That is why in the past, people often accepted to buy gold bars and gold rings at a higher price than the converted world gold price, even much higher. But a recent strange phenomenon shows that, at times, the domestic gold price reacts to buying and selling at a lower price than the world gold price. This is quite unusual compared to before.
Currently, although the State Bank has no intervention and gold prices are being self-regulated by the market based on supply and demand, the strict handling of violations is showing the efforts of State management in making the gold market transparent and healthy, Mr. Truong Vi Tuan emphasized.
Recommending people and gold investors in the context of many fluctuations in this precious metal market, Mr. Truong Vi Tuan said that because domestic gold demand is no longer as fierce as in 2023 and 2024, investors need to calmly observe developments in the world gold market and fluctuations in domestic exchange rates to proactively invest.
According to VNA
Source: https://doanhnghiepvn.vn/kinh-te/khoang-cach-giua-gia-vang-trong-nuoc-va-the-gioi-dang-dan-thu-hep/20250217074017773
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