VINACHEM

The central bank sold 25,500 out of 26,000 gold taels to enterprises and banks through an auction on Tuesday, although the floor price was around VND200,000 higher than the market price for a tael.

Some 12 units won the auction with the highest winning price of VND38 million per tael versus the lowest level of VND37.98 million a tael, much higher than the floor price of VND37.9 million.

Over the past four months, the central bank has launched nearly 55 tons of gold onto the market. Le Minh Hung, deputy governor of the central bank, recently told the media that this agency will continue supplying gold for the market if demand stays high.

Notably, enterprises usually post up buying price in the morning lower than the bidding price and then revise prices following the average winning price. According to a representative of a large gold firm, enterprises have posted up low buying price before the auction to prevent risks, meaning that they do not have to buy gold at prices much higher than the bidding level. Besides, the central bank will base on these prices to calculate low floor price for auctions.

A source told the Daily that Saigon Jewelry Company (SJC) has continued to process gold bars for auctions in recent times.

The gold market has stayed a little quiet as SJC has seen strongest transaction volume of just around 2,000 taels a day. Trading turns busier during the days gold bar auctions take place.