Deputy Prime Minister requests urgent inspection and control of gold market

The document conveys the direction of Deputy Prime Minister Le Minh Khai, based on the State Bank's report at the end of February on the progress of implementing solutions to manage the gold market.

Accordingly, Deputy Prime Minister Le Minh Khai requested the State Bank of Vietnam to coordinate with relevant agencies to urgently, seriously, fully, effectively and promptly implement the tasks and solutions to stabilize the gold market assigned in the telegram and directive of the Prime Minister and the official dispatches of the Government Office.

The Deputy Prime Minister also assigned the State Bank to closely coordinate with relevant agencies to urgently carry out inspection, examination, control, and strict, comprehensive, focused, and key supervision of the gold market.

Along with that is the supervision and inspection of the activities of gold trading enterprises, stores, agents distributing and trading gold bars and other entities participating in the market.

The objective is to ensure stability, stability and safety of the gold market, contributing to limiting the goldization of the economy. At the same time, ensure national financial and monetary security and develop a safe, healthy, effective and sustainable gold market. These tasks are required to report the results to the Prime Minister in March 2024.

Most recently, the Prime Minister directed the gold market, requesting the State Bank to urgently summarize Decree No. 24 on the management of gold trading activities; propose solutions to effectively manage the gold market in the new situation, to be completed in the first quarter of 2024.

He assigned this task to the State Bank in December 2023 when the gold market continuously "danced", fluctuated strongly, increased rapidly, negatively affecting the financial market and social psychology.

With the resolute viewpoint of not allowing the economy to be "goldenized", not allowing negative impacts on exchange rates, interest rates, the monetary and foreign exchange markets, and national financial and monetary security and safety, the Prime Minister requested effective solutions to manage and operate domestic gold bar prices according to market principles, not allowing the gap between domestic and international gold bar prices to remain as high as in the past.

Since the Prime Minister’s directive, the gold market has become more stable, but price movements have continued to fluctuate. Recently, the price of gold has surpassed its historical peak, including gold rings and jewelry, while the price of gold bars has reached nearly 82 million VND/tael for SJC gold, then cooled down.

In recent days, domestic gold prices have continued to decline, believed to be due to the impact of world gold price movements when influenced by the psychology of waiting for the moves of central banks and the Fed on interest rates and economic forecasts.