Buyers line up in front of a VietinBank gold outlet in Hai Bà Trưng District, Hà Nội. VNA/VNS Photo

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.

Economists have also voiced their concerns over the recent gold rush with most agreeing that prices can still go down further as the State Bank of Vietnam has just started rolling out measures to close the price gap between the domestic and international gold markets.

The price gap has largely been seen as reasonable by experts and industry insiders, showing the effectiveness of the central bank's intervention. At a selling price of VNĐ77.98 million per teal, the gap has narrowed to just VNĐ6 million per teal.

"Compared to the previous gap of nearly VNĐ20 million per teal, the gold price has been stabilised and kept at a reasonable level," said Trương Vi Tuấn, a gold expert from giavang.net.

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.

Buyers beware

Gold buyers must exercise caution and try to pick the right time to buy or sell to avoid incurring losses and minimising risks, as the prices of the precious metal can go lower in the short term.

That's according to Lê Thúy Hằng, Director-General of the Saigon Jewelry Company Limited, brand owner of Việt Nam's SJC gold bars and the only officially recognised national gold brand.

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 in the short term. He advised residents to carefully study the market due to recent extremely volatile global prices.

All four commercial banks and the SJC have claimed they are selling and will continue to sell gold to help stabilise the market as instructed by the central bank, and not for profit-driven purposes. 

Commercial banks require 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