Four state-run Vietnamese banks – Vietcombank, VietinBank, Agribank, and BIDV – will start selling gold to residents from Monday next week, Deputy Governor of the State Bank of Vietnam (SBV) Pham Quang Dung announced on Wednesday.

The central bank will directly sell gold bars to these banks on the same day instead of continuing holding auctions.

After the purchase from the SBV, the four banks will sell the gold bullion to customers.

The move is meant to narrow the price gap between domestic and global gold bullion to stabilize the local gold market and manage it more effectively.

The SBV will set the selling prices of gold based on global rates, Dung said.

“The SBV is determined to make the local gold market stable, while the gap between domestic and global gold prices will shrink sustainably,” he stressed.

The deputy governor also advised residents to be cautious about buying gold due to the ongoing fluctuations in gold prices at home and overseas.

The central bank is working with the Ministries of Public Security, Finance, and Industry and Trade, and the Government Inspectorate to launch inspections into some gold firms and commercial banks for their gold trading activities.

The entities subject to the scrutiny are Saigon Jewelry Company (SJC), DOJI Gold & Gems Group Joint Stock Company (DOJI), Phu Nhuan Jewelry Joint Stock Company (PNJ), Bao Tin Minh Chau Company, TPBank, and Eximbank, according to an announcement made by the central bank last week.

Over the past month, the SBV has held nine gold auctions, with six of them being a success, supplying over 1.8 million metric tons of gold to the market in an effort to stabilize the local market. 

However, the gap between domestic and international gold prices remains wide, arousing a doubt about market manipulation, and pricing and gold trading violations.

Therefore, the central bank decided to scrutinize commercial banks and gold trading firms to impose harsh sanctions on violators and bring the local gold market back on track.

The central bank on Monday announced that it would halt gold bullion auctions and introduce a new strategy to stabilize local gold prices as early as June 3. 

The global price of gold stood at US$2,351.7 per ounce, equivalent to VND72.2 million ($2,838) per tael, on Tuesday afternoon.

One tael is equivalent to 1.21 troy ounces.

Meanwhile, SJC, the largest gold firm in Vietnam, listed its selling prices at VND90.5 million ($3,545) per tael the same day, up VND600,000 ($23.5) against the day before.

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