Gap between domestic and global gold prices continues narrowing

The gap between the domestic and global gold prices has been further narrowed, since the State Bank of Vietnam (SBV) continued cut the selling prices of SJC-branded gold bars on June 6.

The central bank sold the gold bars to the four State-owned commercial banks and the Saigon Jewelry and Germ Stone Co. (SJC) for sale to the public at VND75.98 million ($2,985) per tael, down VND1 million ($39) from the previous day.

Accordingly, the four banks, namely Agribank, BIDV, VietinBank and Vietcombank, and the SJC listed the retail selling price of gold at VND76.98 million per tael, VND1 million lower per tael than the price set for June 5.

At this level, gold prices in Vietnam are around VND3.98 million ($156.3) a tael higher than global price, much lower than a gap of VND20 million ($785) at a peak recorded earlier this month.

The four banks and the SJC are solely permitted to purchase SJC gold bars from the central bank to sell to the public as part of measures to stabilize the market. They started to sell gold to the public on June 3.