Pure gold price hit all-time high of K3.5 mln per tical in domestic markets

The pure gold price reached a fresh new peak of K3.5 million per tical (0.578 ounce or 0.016 kilogramme) in the markets, said gold traders.
Kyat’s weakening against the safe-haven US dollar pushed up the pure gold price. The exchange rate against a US dollar was worth K4,000 in the unofficial forex market.
Despite the record price in the markets, Yangon Region Gold Entrepreneurs Association set the pure gold price at K2,025,000 per tical on 31 August.
The association calculated the price depending on the Central Bank of Myanmar’s reference exchange rate against a dollar at K2,100, YGEA Chair U Myo Myint told the Global New Light of Myanmar.
The difference between the market price and the YGEA’s set price was to K1,500,000. The black market might arise again following the soaring dollar, resulting in the suspension of gold bar transactions, he explained.
Nonetheless, YGEA decided to make a sales report according to the actual market price on 29 August 2022.
The decision was made following the meeting of the Monitoring and Steering Committee on the Gold and Currency Market and also with the officials involved in gold smelting and refining businesses in Yangon, Mandalay and Mawlamyine cities on 27 August 2022. YGEA settled this under the guidance of the officials concerned, U Myo Myint elaborated.
There is a large gap of K1.5 million between the market price and YGEA’s set price. Consequently, a market report to the related department must be done as per the actual market price.
At the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a high of K2.22 million per tical.
Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on the Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability play a crucial role in trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators. – NN/GNLM