Gold prices increased sharply, but the difference between domestic and foreign gold prices was controlled at a reasonable level.

In the above report, the State Bank said that thanks to a series of solutions, by the end of 2024, the difference between domestic and world gold prices had been controlled and maintained at a suitable range.

Accordingly, the difference between the world gold price and the domestic gold price will be converted from 25% at the peak (VND 18 million/tael - PV) to about VND 3-5 million/tael (equivalent to about 5-7%) by the end of 2024. In the first quarter of 2025, the world gold price continuously broke the previous record, increasing from USD 2,635/oz (January 2, 2025) to the highest level of USD 3,047/oz on March 19, 2025.

The increase in gold prices is a common trend in both the international and domestic markets, however, the difference between the average domestic gold buying and selling price and the world price has decreased significantly compared to 2024.

The State Bank also gave three reasons for the recent increase in international gold prices. Firstly, political instability, military conflicts, and increased strategic competition on a global scale, such as the prolonged Russia-Ukraine military conflict, which has led to economic and political sanctions and retaliation between Russia and the US and its allies; and military conflicts between Israel and Muslim countries and forces in the Middle East.

Second, many central banks and investment funds are increasing their gold purchases to supplement foreign exchange reserves, which is also an important reason for the increase in gold prices.

Third, US President Donald Trump announced high reciprocal tariffs with countries around the world, which negatively impacted investor sentiment and global economic growth, causing investors' cash flow to tend to flow into gold;... Domestically, the price of SJC gold bars moved in the same direction as the world price, from VND84.05 million/tael on the first day of 2025, increasing to around VND100.4 million/tael on March 19, 2025.

As of the morning of April 18, the buying price of SJC gold bars was 117 million VND/tael - selling price was 120 million VND/tael.

According to the State Bank of Vietnam's assessment, the increase in gold prices is a common trend in both the international and domestic markets. However, the difference between the average domestic gold buying and selling price and the world price has decreased significantly compared to 2024 (at times the difference reached the highest level in 2024 of about 18 million VND/tael, equivalent to 25%), and now it is about 2-4 million VND/tael (equivalent to about 3 ~ 5 %), at many times the buying price of SJC gold bars is lower than the converted international gold price. This development shows that with the recent gold market management measures, the difference between the domestic SJC gold bar price and the converted world gold price is controlled within a suitable range.

Regarding gold market management, the State Bank said that it has submitted a report to the Prime Minister proposing the development of a Decree amending and supplementing Decree No. 24/2012/ND-CP dated April 3, 2012 on gold trading management. In the coming time, the State Bank will continue to implement gold market management based on the direction of the Government, the Prime Minister, and legal regulations; closely coordinate with ministries, branches, and localities in managing gold trading activities.

At the same time, we will continue to perfect the legal framework for gold business management, focusing on summarizing Decree No. 24/2012/ND-CP dated April 3, 2012 of the Government on gold business management to propose, amend and supplement in accordance with the practical situation.

Source: https://thoibaonganhang.vn/vang-tang-manh-nhung-chenh-lech-gia-vang-noi-ngoai-duoc-kiem-soat-o-muc-hop-ly-162971.html