Vietnam gold prices plummet as authorities call for fight against speculation

Prices of gold bullion nosedived on Monday morning after the government asked relevant authorities to inspect and handle all potential violations in the gold market.

The yellow metal at state-owned Saigon Jewelry and Germ Stone Co. (SJC) was being offered at VND85.5-88.5 million ($3,359-3,479.7) a tael for bids and asks, respectively, down VND3.3-2.8 million ($130-110) from last weekend.

Doji, another major gold retailer, was trading SJC-branded gold bars at VND85.5-87.5 million ($3,359-3,437), down from VND86-87.5 million a tael for buying and selling on Sunday. A tael is equivalent to 37.5 grams.

At 8 a.m. (Hanoi time), the global gold spot price stood at $2,361 an ounce, up $2.3 from last week’s close. At this level, the gap between gold prices in Vietnam and the world has fallen to VND16 million ($628.6) from VND19.5 million last week.

The local gold price peaked at VND92.4 million ($3,630) a tael at SJC last Friday, meaning that the price has dropped VND3.9 million ($153.22) a tael in three days.

At a working session on Sunday with the Ho Chi Minh City government, which owns SJC, the State Bank of Vietnam said it would continue offering gold bars at upcoming auctions with “volumes and a frequency in line with demand.”

The two sides agreed to work closely to manage the gold market effectively and crack down on speculation, manipulation, and cross-border smuggling.

SJC was requested to strictly comply with regulations on invoicing and electronic receipts, and report on suspected money laundering through gold transactions.