Vietnam gold prices plunge after central bank’s increased supply announcement

Gold prices at major retailers in Vietnam plummeted Saturday morning after the country’s central bank stated that it will increase supply of the precious metal to cool the ongoing buying fever.

State-owned Saigon Gems and Gold Company (SJC) set its opening prices for its SJC-branded gold bars at VND81.2-83.7 million ($3,343) per tael of 37.8 grams for bids and asks, down VND1.3 million and VND800,000, respectively.

The price of gold rings also dropped VND1.05-1.25 million to VND74.3-76.2 million ($3,043) per tael.

Gold bullion prices at private chain Bao Tin Minh Chau dropped VND1.4-1.1 million to VND81.3-83.4 million ($3,331). Similar prices were seen at stores run by the DOJI Group.

Gold prices had dropped Friday afternoon from an all-time high of VND85 million ($3,383) per tael shortly after a central bank official declared an immediate intervention.

State Bank of Vietnam Deputy Governor Pham Thanh Ha told media Friday that the banking regulator will increase gold bullion supply “immediately” to narrow the domestic-global price gap, which stood at VND13 million ($519) a tael.

A day earlier, the Government Office dispatched Prime Minister Pham Minh Chinh’s directive ordering swift action to narrow the price disparity.

The global spot gold price on the Kitco fell off its peak of $2,432/ounce last night to $2,332/ounce at 11 a.m. (Vietnam time).