Domestic gold market sees slight rise in price

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Gold jewelry seen at shop in downtown Yangon.  Photo: Phoe Khwar

By Nyein Nyein

The domestic gold prices slightly increased on the back of a record rise in the international global market, said Yangon Gold Entrepreneurs Association (YGEA).

At present, global gold prices hit an all-time high of US$1,784 per ounce, while a pure gold fetches over K1,224,000 per tical (0.578 ounces, or 0.016 kilograms).

Yet, the domestic gold price is not as high as that registered at the opening time of the gold market on 18 May, according to the gold market. The local gold market was reopened on 18 May at K1.236 million per tical.

Following the global hikes, the domestic gold price should have raised to above K1.3 million per tical. However, the rate of domestic gold prices is about K100,000 per tical lower than international prices, said U Myo Myint, chair of YGEA.

In early September last year, the price of pure gold reached an all-time record of above K1,300,000 per tical in the domestic market, while the price of gold was pegged at just US$1,550 per ounce in the global market.

Despite the upticks in the global gold market, the domestic market cannot raise the price as the foreign demand halted, coupled with Kyat gaining against the US dollar, said U Myo Myint. Additionally, the domestic market sees more sellers than buyers, the YGEA stated.

According to gold traders, during the past four months, the local gold price moved in the range of, K1,214,100 on 5 February and K1,234,200 on 28 February. In March, it reached the lowest level of K1,148,000 (31 March) and the highest level of K1,218,600 (4 March).

In April, the coronavirus risks shut down the gold market, and the market was reopened on 18 May, with the minimum rate of K1,214,100 (27 May) and the maximum rate of K1,236,000 (18 May), according to gold traders.

With global gold prices on the uptick, the domestic price hit fresh highs last year, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 7 August), climbing to 1,200,000 (7 August-4 September), and then reaching an all-time record high of K1,300,000 on 5 September 2019. (Translated by Ei Myat Mon)

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