Central bank to auction gold bars next week

Speaking at a press conference on the SBV’s operations in the first quarter of this year, Deputy Director of the SBV’s Foreign Exchange Management Department Dao Xuan Tuan said the central bank will send a notice to 15 businesses which as eligible to buy gold bars on Friday afternoon.

Preparations for the auction have been completed, the official said, noting that the sale is expected to boost the supply of the precious metals amid record high prices, thus ensuring the safe, stable, healthy, transparent and effective operation of the domestic market as requested by the Prime Minister.

A minimum price will be set and bidders will have 30 minutes to determine the price and volume they want. The winning bids will be announced one hour after the auction closes.

Prospective buyers need to place a deposit to join the auction no later than 5:00 p.m. on the day they receive the official notice.

The last time the central bank sold gold bars was in 2013 when over 1.8 million taels were offloaded, with a total of 76 auctions. A tael equals 37.5 grams or 1.2 ounces.

Gold bullion was traded at VND81.8 million VND (US$3,213) for buying and VND83.82 million for selling on Friday, a drop of about VND300,000 from the previous session.

The central bank has sent documents to ministries and agencies, asking for their coordination in implementing the Prime Minister’s instructions in gold market management.

It also asked its branches in cities and provinces to work together with competent agencies in localities to intensify inspection and supervision over gold business, and handle any violation of regulations.