VietNamNet Bridge - Domestic gold price has fallen back to VND48.8 million a tael after surging to VND48.9 million a tael after the release of the central bank’s solution package for controlling the gold market, including the approval on unlimited gold import.
World gold price Tuesday has sometime exceeded $1,912 an ounce after retreating to $1,895 a tael.

The central bank said it would propose the government for new measures, replacing the obsolete decade-long Decree 174 on gold market management, to put domestic gold market under control early next month.

Among the proposed measures, stabilizing the forex rate, timely licensing gold imports to prevent speculation, and mobilizing available domestic gold reserves, both in banks and in the hand of the people, will help stabilizing the market in the long run.

SBV approved major Vietnamese gold traders to import the precious metal unlimitedly to keep pace with rising domestic demand

Regarding gold bullion production, depending on the actual conditions in each period, the central bank will act as a sole gold producer or license a limited number of businesses to produce gold bars.

Regarding the circulation of gold bars, SBV will only allow a number of businesses and financial institutions with experiences in gold business to carry out gold trading so that the central bank could keep an eye on them more closely.

On the export and import raw material gold, the central bank will be the only organization empowered for the operation, or it will license a limited number of businesses to do the job.

Regarding production and processing of gold jewelry and fine art, the central bank's branches in provinces and cities will issue certificates for eligible enterprises.

Particularly, small-scale processing activities of individuals, households, and cooperatives will not need to apply for a certificate of eligibility from the central bank’ branches, but the standard local certificate of business registration.

On purchase of jewelry, fine arts, organizations, individuals and business wishing to buy or sell gold jewelry and fine art will have to establish businesses meeting certain conditions specified in the future decree but not need to apply for a certificate of business eligibility.

According to the central bank, with directions as mentioned above, the central bank has participated directly in charge of the production and circulation of gold; import and export of raw gold materials. These factors ensure effective central bank intervention in the gold market and prevent any the gold price speculation.

The last time the central bank issued five tons of gold import quotas, but in fact the only real import volumes were about 3 tons.

Domestic gold price Monday evening fell back from VND48.7 million a tael to VND48.35 million after the State Bank of Vietnam (SBV) meeting on preparation for another gold spike and the retreat of world price to $1,869 an ounce.

The price of the precious metal hit the historical rate, up VND1.15 million over last weekend, after world price exceeded $1,890 an ounce in the Monday morning’s trading session.

The then price gap between domestic and its international counterpart was some VND1.15 million a tael.

Nguyen Ngoc Que Chi, general manager of Sacombank Jewelry Co (SBJ), said sales volume on Monday at were around 7,000-8,000 taels, while the sales volume at Phu Nhuan Jewelry Co reached 2,400 taels.

Source: Tuoi Tre