PM urges stricter control of the gold market

PM urges stricter control of the gold market

Prime Minister Phạm Minh Chính has directed authorities to prevent manipulation, hoarding, and price gouging in the gold market.

The price of each gold bar went up by VNĐ1 million this morning, setting a new record above VNĐ135 million. — Photo nguoiduatin.vn

Prime Minister Phạm Minh Chính has directed authorities to prevent manipulation, hoarding, and price gouging in the gold market. If necessary, he has called for both the inspection by the State Bank of Vietnam (SBV)  and the Government Inspectorate to get involved.

At the Government's meeting on Saturday, the Prime Minister instructed the Deputy Prime Ministers and relevant agencies to act promptly to assess the situation and propose appropriate solutions, along with timely policy responses in areas such as the gold market, real estate, and securities.

Regarding the stock market, the Prime Minister stated that capital flowing into the production and business sectors would be a positive development for the economy.

To control this, he asked involved parties to accurately assess recent developments and determine whether there was any price inflation or market manipulation.

Gold prices have been continuously rising over the past two weeks. Within this period, the price of gold has increased by about VNĐ10 million per tael, which represents an increase of nearly 8 per cent.

The price of each gold bar went up by VNĐ1 million (US$39) this morning, setting a new record above VNĐ135 million, maintaining a difference of VNĐ20 million compared to the world market.

According to the National Statistics Office, the gold price index increased by 1.2 per cent lasat month compared to the previous month and by 48.62 per cent year-on-year.

On average, the gold price index in the first eight months, increased by 40.25 per cent year-on-year.

The government issued Decree 232, granting permission for certain banks and companies that meet the required conditions to import and produce gold bars.

It is expected that about eight banks and three companies, including PNJ, DOJI, and SJC, will meet the conditions for producing gold bars.

Experts believed that in the medium to long term, the new regulations would likely bring domestic gold prices closer to global prices, with the price gap possibly fluctuating around a few percent, approximately VNĐ4-5 million, instead of the current VNĐ20 million difference.

However, the effects of these new regulations on domestic gold prices would take time and would not have an immediate impact, said experts. 

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