Binh was speaking in an online Q&A session on May 5, responding to readers’ questions about the recent sharp fluctuations in gold prices and the central bank’s move to address the issue.

Domestic gold prices tumbled dramatically from around VND45-46 million/tael to below the surprising VND40 million/tael in just a few days in mid April, causing great public concern.

Central Bank governor Nguyen Van Binh vows to control the gold market

Despite the fluctuations, there was a broad difference in the domestic and global gold prices, creating a plenty of opportunity for traders to corner the market.

In early April, the government issued a decree to tighten the State management of gold trading and gold import-export activity.

The central bank began gold auction sales in late March in an attempt to cool down the domestic gold market and narrow the price gap. To date 13 sessions have been conducted.   

The domestic gold market is normally adjusted shortly after global gold dips dramatically, sparking a buying spree among residents.

However, the promulgation of the government’s decree and subsequent gold bullion sales stopped market manipulation, keeping domestic gold prices comparatively stable despite sharp fluctuations in early April, said the governor.

The domestic and global gold prices will come closer together in the mid- and long-term if Vietnam stabilises its domestic gold market, plus constant macro-economic stabilisation efforts, Binh concluded. 

VOV