Residents queuing up to buy gold at an Agribank office in Ba Đình District, Hà Nội. —VNA/VNS Photo

Residents in large cities have been lining up to buy SJC gold bars at outlets set up by commercial banks since yesterday, with many saying they have not been able to finalise any purchases. Meanwhile, bank representatives claimed there is no shortage of the precious metal and that domestic gold demand will be met.

As of Tuesday afternoon, the price of SJC gold bars sold directly from the SBV to four large commercial banks with state capital, namely Agribank, BIDV, VietinBank and Vietcombank, as well as Saigon Jewellery Company Limited (SJC), was reported at VNĐ77.98 million per teal, VNĐ1 million lower than the previous day. The banks listed the selling price at VNĐ78.98 per teal, VNĐ1 million higher than the SBV's price - but they do not buy gold from residents.

SJC, as an exception, could sell and buy gold.

The price of the precious metal dropped significantly from its peak of VNĐ92.4 million per teal, a new historic height for gold in Việt Nam as recorded on May 10.

Đào Xuân Tuấn, head of the SBV's foreign exchange department, said the central bank's determination and resources dedicated to narrowing the gap between domestic gold and the international market will likely send prices down further. He advised residents to exercise caution when buying gold due to recent extremely volatile global prices.

Nguyễn Thị Phượng, Deputy Director-General of Agribank, said the bank had underestimated the number of residents showing up to buy gold on the first day, which has resulted in some customers having to go home without any.

She, however, said residents need not rush to buy gold as the banks will continue to supply the market until the targeted price gap is achieved.

Phùng Nguyễn Hải Yến, Deputy Director-General of Vietcombank, said the central bank has set maximum and minimum quantities for each bank for each trading session. Vietcombank will sell to customers based on demand and the quantity available to the bank.

"If the bank has run out of gold, the order could still be processed and finalised once Vietcombank receives additional gold from the central bank," she said.

Vietcombank requires customers to present a valid ID and put down a 10 per cent deposit on their orders, which will not be refunded in the event the customers fail to finalise the purchases. Customers can use either cash or transfers, but the latter is preferable for large orders to save time. — VNS