A representative of the State Bank of Vietnam (SBV) in Ho Chi Minh City said on May 14 the central bank would inject gold into the market through auctions if demand increases in the coming days, according to a local newspaper.
The Saigon Times Daily on May 15 quoted Nguyen Hoang Minh, Deputy Director of the central bank’s HCM City branch, as saying that the agency was closely keeping a close watch on the local gold and foreign exchange markets to timely propose measures for the central bank and the HCM City government to intervene.
Minh noted that strong increases in gold prices on May 14 were mostly attributed to consumer anxiety as in reality trading of this yellow metal was not bustling. Therefore, consumers should be careful about their purchases.
Minh said gold prices on the domestic market were still higher than the world’s rates and any supply increase from the central bank would lead to immediate price falls and consumers would suffer as well.
The price of SJC gold bars soared VND730,000 per tael on May 14 over the previous day to VND36.45 million per tael. Compared to late last month, a tael – which equals 1.2 troy ounces – was VND1 million higher.
Nguyen Cong Tuong, Deputy Sales Manager of Saigon Jewelry Holding Co. (SJC), said the hike in gold prices resulted from increasing demand. The company sold 3,000 taels of gold compared to the daily average of 1,000 in previous days.
Compared to the world’s price, domestic gold is VND3.2 million per tael higher than the world’s.
For the foreign exchange rate, Minh said supply and demand in the banking system remained stable as the rate was VND21,115-21,120 per US dollar.
One US dollar was exchanged for VND 21,250 on May 14 at unofficial channels, up around VND130 compared to earlier this week while the Bank for Foreign Trade of Vietnam (Vietcombank) sold one US dollar for VND21,120, the same as previous days.
Global gold on www.kitco.com on May 14 evening was quoted at US$1,302 an ounce, up US$8.5 against the closing time of the New York stock exchange the previous night.