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Central bank to increase gold supply to contain price hike

By Dung Nguyen

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HCMC – The State Bank of Vietnam (SBV) will boost gold supply to stabilize the market and address high gold prices, the local media said, quoting SBV deputy governor Pham Thanh Ha.

Ha today, April 12, referred to the prime minister’s instructions provided in Notice No. 160/TB-VPCP dated April 11 of the Government regarding actions needed to stabilize the volatile gold market.

The SBV, the central bank, plans to cool down the domestic gold market by immediately increasing the supply of the yellow metal to narrow down the price gap between domestic and global gold prices.

“To stabilize the market, the SBV has prepared intervention plans and continues to conduct inspections of gold trading operations of businesses and banks nationwide,” said Ha.

Regarding the jewelry and handicraft gold market, the SBV will continue to create conditions to ensure sufficient gold material for production and export.

It will collaborate with relevant ministries and agencies to promote the use of electronic invoices in gold transactions to enhance transparency and management efficiency, as well as clamping down on smuggling, speculation, price manipulation, and other illegal gold activities. Inspection teams will be formed and start operations this month.

According to Notice No. 160/TB-VPCP of the Government, the SBV is instructed to closely monitor global and domestic gold price movements and proactively implement market management measures.

“(The SBV) must promptly address the wide price gap between domestic and international gold prices in a way that ensures a stable, healthy, transparent, and efficient gold market, prioritize the national interest above all, and encourage the production and export of jewelry and handicraft gold to create employment and livelihoods for workers,” the conclusion states.

Today’s gold price rose further in the morning trading session, with SJC gold bars soaring to a record high of VND85 million per tael. A tael equals 37.5 grams or 1.2 troy ounces.

However, the gold price reversed course in the afternoon, dropping by VND500,000 per tael to VND84.5 million per tael after news broke that SBV plans to increase gold supply.

Meanwhile, world gold prices continued to climb to nearly US$2,400 per ounce, equivalent to around VND72.5 million per tael.

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