Hanoi (VNS/VNA) - The Government has called for stricter market management, intensified inspections and larger penalties for violations in response to the recent developments in domestic gold prices.

This directive was a part of Resolution No. 124, in which the government specifically ordered enhanced regulation of the gold market, greater oversight and strong enforcement measures.

Meanwhile, the government demanded the prompt submission of a revised decree - amending and supplementing certain provisions of Decree No. 24/2012 on gold trading - for approval within the second quarter of 2025.

Earlier, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong submitted a report to the National Assembly concerning the implementation of its resolution on banking-sector inquiries, including the issue of gold prices.

She said the central bank implemented a series of measures to strengthen the regulation of the gold market and to address the significant gap between domestic gold bar prices and international gold prices. The SBV released gold bars into the market through public auctions and direct sales, significantly narrowing the difference between domestic SJC gold bar prices and global rates.

It also coordinated with relevant ministries and sectors to inspect the gold trading activities of several entities and businesses - with those inspection conclusions currently being finalised.

The Governor said global gold prices had repeatedly broken previous records during the first months of 2025.

Domestically, SJC gold bar prices had moved in tandem with international trends. As of early April, the gap between domestic and international gold prices remained controlled, staying within a range of 3–5 million VND per tael (approximately 5–7%).

However, by April 23, the price gap between domestic SJC gold bars and their international equivalents had widened to around 14.48 million VND per tael (roughly 13.62%).

She said the surge in domestic gold prices and the widening disparity with global rates were partly due to market psychology, driven by expectations of further international price hikes. These expectations stemmed from the potentially negative impact of the Trump administration’s tariff policies on the global economy.

Contributing factors also include the unpredictable trajectory of the US Federal Reserve's monetary policy, intensifying global geopolitical tensions and possible commodity price shocks—all of which are fuelling increased demand for gold.

On the supply side, Hong added that the amount of gold bars in the domestic market had not increased since the beginning of 2025. She also acknowledged the possibility that certain businesses or individuals had been exploiting market volatility to hoard gold, inflate prices and profit unfairly.

Sharp drop

Domestic gold prices dropped significantly in line with the global market Tuesday. SJC gold bars fell to around 119 million VND per tael, while plain gold rings dropped to a low of 115 million VND per tael (1.33333 ounce).

In Ho Chi Minh City, the Saigon Jewelry Company (SJC) listed SJC gold bar prices at 117.2 million VND (buying) and 119.2 million VND (selling), a sharp decline of 2.8 million VND per tael compared to early May 13 morning.

Other gold trading enterprises also made steep adjustments, bringing SJC gold prices down to 119.2 million VND per tael.

Gold ring prices also fell as major brands listed gold rings in the 112.5–116 million VND range. As prices tumbled, jewellery shops widened the buying–selling spread for gold rings to between 2.5 - 3 million VND per tael.

The sharp drop in domestic gold prices came as global gold prices plunged to 3,239 USD/ounce - an 86 USD decline compared to May 13 morning. This global rate equals approximately 103 million VND per tael, meaning SJC gold bars are still priced about 16 million VND higher than the international gold price.

Despite the significant drop, SJC gold bars remain approximately 16 million VND per tael above global gold rates./.