Central bank vows to intervene in gold market

Khanh Minh Thursday | 08/06/2020 14:14

Gold price increases sharply on surging demands. Photo: Chi Hung / Zing

The State Bank of Vietnam has said it will have measure to stabilize the domestic gold market as prices kept soaring recent days.

The central bank which was allowed to trade in the local gold market in its efforts to align the local and global prices said it continues to closely monitor the development of gold price in the market.

“If there are unusual developments, there will be solutions and sufficient resources to stabilize the market,” the regulator said in a statement.

After the central bank released this statement, domestic gold price climbed to a new peak when global prices hit an all-time high.

The global gold price has risen sharply, exceeding the important psychological threshold of $2,000 per ounce. On Wednesday, gold price rose to a record $2,055 per ounce, the highest level in history.

Vietnam’s central bank said that gold price surge following the increasing demand to invest in gold as a safe asset in the current situation.

Governments and central banks of countries are deploying economic stimulus packages to limit the negative impact of the COVID-19 pandemic. Trade tensions between major economies are also the cause of gold price increases.

The State Bank of Vietnam said that the increase in domestic SJC gold price is consistent with the increase in international gold price.

► Gold continues to scale new peaks