The price of gold rings hiked by VNĐ4 million per tael and exceeded VNĐ78 million (US$3,250) per tael in the first three days of the week.

However, after reaching the peak on Thursday, the price of gold rings immediately declined. The gold price reversed up on Friday and once again dropped on Saturday.

Similarly, SJC gold prices also had a volatile week. Gold bars officially reached a new peak of VNĐ85 million per tael on Friday morning, then dropped sharply over the weekend.

Experts assessed that many factors had caused the price of gold rings to soar sharply, from fluctuations in the world market to the psychology of local people.

According to Deputy Chairman of the Việt Nam Gold Trading Association (VGTA) Huỳnh Trung Khánh, the gold market shifted to gold rings last week because buyers were concerned about the high price of bars.

It is also worth noting the gold ring production did not have enough raw materials, so it fell into a situation of scarcity even though it was not a monopoly brand, leading to a price hike, said Khánh.

In addition, the giavang.net representative Trương Vi Tuấn shared that domestic gold prices had continuously increased in recent times due to many reasons, including the influence of world gold prices, rising demand for buying and investing in gold when other investment channels such as stocks and real estate had not brought expected profits and savings interest rates had continuously fallen.

At the same time, efforts to prevent gold smuggling cases have made the domestic supply of raw materials scarce, pushing up prices.

Currently, the market is anticipating the amending Decree 24/2012/NĐ-CP dated April 3, 2012 on the management of gold business activities.

“In the context of continuously rising gold prices, the introduction of specific revised solutions is expected to help ease the situation and create stability for the gold market in the future," stressed Khánh.

Former acting chairman of the National Financial Supervisory Commission Trương Văn Phước believes that to amend Decree 24 and solve the gold market problem, the solution is to import raw gold to increase supply to the market, thereby narrow the gap between domestic and world gold prices, especially for SJC gold bars.

In the market, according to observations of Vietnam News Agency reporter, people's purchasing power has not shown any signs of cooling.

Long lines of people are still seen at reputable gold shops and businesses on Trần Nhân Tông Street, Hà Nội.

Huỳnh Phương Vy, of the Tín Nghĩa gold store, shared that there were almost no gold sellers in the market and buyers needed to purchase in large quantities, both SJC gold bars and gold rings.

There was a time when the store was out of stock and had a shortage of goods, so it is now selling a maximum of five taels of gold per transaction, to ensure that everyone who comes can buy.

Late last week, Deputy Governor Phạm Thanh Hà told the press that the State Bank of Vietnam will increase the supply of gold bullion to handle the existing huge difference in domestic and world gold prices.

This is one of the bold solutions raised by the SBV after Prime Minister Phạm Minh Chính asked for prompt efforts to stabilise the domestic gold market, ensuring its transparent, health and efficient operation.

For the gold jewellery segment, the SBV will strive to ensure raw materials for production and export, Hà stressed. — VNS