SBV predicts SJC-branded gold bullion price to keep declining

Hanoi – The narrowing of the gap between domestic and global gold prices may further pull down the selling price of SJC-branded gold bullion of state-owned commercial banks and Saigon Jewelry Company (SJC) in the near future, Dao Xuan Tuan, Director General of the State Bank of Vietnam (SBV)'s Foreign Exchange Management Department, has said.

He, therefore, advised people to be cautious when buying gold amidst the global price volatility.

SJC General Director Le Thuy Hang said buyers should consider and choose the right time to buy and sell the precious metal to avoid risks because gold price fluctuations only occur in the short term.

Analysts held that the continuous decrease in the price of SJC gold bullion after it is sold directly by the SBV over the past few days has kept the gap at a reasonable level, matching the central bank's intervention purposes in this regard.

Truong Vi Tuan, an expert from the gold price website giavang.net, said with the selling price of SJC-branded gold bullion announced by the SBV on June 4 morning at 77.98 million VND (3,069 USD) per tael, the price difference was about 6 million VND, which is quite reasonable as compared to nearly 20 million VND previously.

The domestic gold bar price on the day fell 1 million VND from the previous day. A tael equals 37.5 grammes or 1.2 ounces.

Earlier, the SBV said the four state-owned lenders of Agribank, BIDV, VietinBank and Vietcombank, and SJC are solely authorised to purchase SJC gold bars from the central bank and sell to the public. This strategic move aims to promote market stability and ensure a balanced gold market.

The State Bank of Vietnam (SBV) announced on June 3 that the selling price of SJC-brand is 78.98 million VND (3,108 USD) per tael.