The State Bank of Vietnam announced today (April 15) that it will soon hold an auction to sell gold bullion under the SJC brand in an effort to cool market prices that have been inflamed by recent geopolitical tensions.

Vietnam's central bank will soon hold an auction to increase supply to the gold market and lower prices. Photo: The Hanoi Times

The date of the auction has not been set, according to local reports. The central bank will send the invitation to domestic gold companies one day before the auction.

Local companies will have to complete the deposit by 5 pm on the day they receive the invitation in order to be allowed to bid in the auction.

The auction will run for 30 minutes. Results will be announced one hour after it ends.

Twenty-six commercial banks and gold trading companies have been trading gold bullion under the SJC brand with the central bank. Of these, 15 companies have qualified for the upcoming auction.

The upcoming event will be the first gold auction in 11 years. The first gold auction was held on March 28, 2013.

The central bank held a total of 76 gold auctions that year, selling more than 1.81 million taels of the total of 1.93 million taels offered for bidding.

Gold prices have surged in recent weeks on concerns about ongoing geopolitical tensions around the world. Gold futures at 16:00 today (April 15) were at US$2,349 for an ounce, or VND71.8 million ($2,849.77) per tael.

As of 3:45 pm today (April 15), Saigon Jewelry Joint Stock Company's (SJC) published buying and selling prices for gold bullion were set at VND81.8 million ($3,246.67) and VND84.1 million ($3,337.96) per tael. At Bao Tin Minh Chau, the prices were set at VND82.55 million ($3,276.44) and VND84.55 million ($3,355.82) per tael, respectively.

Compared with April 14, gold bullion prices increased by VND1.2-1.5 million ($47.63-59.54) per tael.

Last weekend, the Prime Minister asked the Central Bank to take strong action and narrow the gap between domestic and international gold prices.

In response, Deputy Governor Pham Thanh Ha said the central bank will increase the supply of gold bullion to the market. The State Bank of Vietnam will also send inspection teams to check gold shops to ensure that the gold price is not inflated.