Legal documents and Decree 24 on managing gold trading emphasise the goal of stabilising the market, Binh said at the May 5 Q&A session on TV Channel VTV1.
Regarding the wide differentiation between domestic and global gold prices, the SBV Governor said it the gap between global and domestic prices is to be expected.
For example, he said the SBV’s first five gold auctions caused domestic gold prices to fall from VND46-47 to VND42-43 million per tael , narrowing the difference between global and domestic prices from VND6 million to VND2.5-3 million per tael.
However, the global gold price fell dramatically in mid-April, which created an even wider gap.
In the past, the domestic gold market was normally adjusted shortly after any dramatic global dips, sparking buying sprees among the Vietnamese.
The promulgation of the Government’s decree and subsequent sales of gold ingots stopped market manipulation and kept domestic gold prices comparatively stable despite significant fluctuations, said the Governor.
The central bank began auctioning gold in late March, aiming to cool the domestic market and narrow the price gap. Thirteen such auctions have been held to date.
Domestic and global gold prices will become closer in the mid- and long-term if Vietnam stabilises its domestic gold market and continues to makes efforts to stabilise its macro-economy, Binh affirmed.
