VIETNAM’S central bank said on Monday (Apr 22) it would cancel its first gold auction in 11 years due to a lack of interest from buyers, and said the auction was now expected to take place on Tuesday.

The State Bank of Vietnam (SBV), the country’s central bank, said last week it would auction nearly 17,000 taels of gold bars as part of efforts to increase supplies amid a surge in prices.

However, an hour before bidding was due to begin, SBV announced the cancellation of Monday’s auction due to “not having enough members to register to bid and transfer deposits”.

The price of gold bars in the South-east Asian country has gained around 15 per cent this year. Gold bar was trading at 82.8 million dong (S$4,428) per tael on Monday, while on global market, each tael was at US$2,371. A tael equivalent to 37.5 grams or 1.21 troy ounces.

Under regulations aimed at stabilising prices, the central bank has a monopoly on the production and import of gold, while Saigon Jewelry Company (SJC) is the sole manufacturer of SJC-branded bullion.

Local businesses have urged the SBV to amend the regulations in light of the current situation.

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Last week, Vietnam’s parliament asked the government to investigate gold trading firms for possible market manipulation amid soaring domestic prices. REUTERS