Vietnam gold bullion prices hit new high amid lukewarm response to auctions

Gold biscuit prices jumped to an all-time high in Vietnam Tuesday, following global price movements, even as firms remained uninterested in central bank auctions of the previous metal.

State-owned Saigon Jewelry and Germ Stone Co. (SJC) raised its buying and selling prices of SJC-branded bullion by VND1 million ($39.4) from Monday to VND85.3-87.5 million ($3,361-3,447) a tael, respectively. A tael is equivalent to 37.5 grams.

This is the fifth straight day that gold prices have risen in Vietnam.

Phu Nhuan Jewelry JSC (PNJ) quoted its gold bars at VND85.1-87.4 million ($3,353-3,443) a tael, up VND800,000-900,000, for buying and selling.

Prices at other major gold traders like Bao Tin Minh Chau, Mi Hong, Eximbank and TPBank Gold also rose, but at a slower pace.

Compared to the global price of $2,322 an ounce Tuesday morning, Vietnam’s was higher by around VDN16.2 million ($638) million a tael.

Prices of 24-carat gold rings also rose by VND200,000 ($7.88) a tael to VND73.5-75.2 million at SJC and PNJ.

Meanwhile, gold auctions launched by the State Bank of Vietnam have failed to attract domestic companies and commercial banks as expected. Three auctions were cancelled due to the lack of interest; while just 3,400 taels of SJC-branded bars, or one fifth of the volume offered, was sold at the second auction on April 23.

The Vietnamese central bank holds a monopoly on gold import and production. Local economists have called on the bank to relinquish it and manage the gold market in a more market-oriented manner.