By Nyein Nyein
With the US dollar depreciating against the Kyat, the price of the yellow metal in the domestic market has extended its drop to touch K1.18 million per tical, said U Ohn Myaing, General Secretary of the Myanmar Gold Entrepreneurs Association (MGEA).
“The dollar exchange rate has been weakening since 25 December, sliding below K1,500 per dollar. It fell below K1,350 on 9 March,” he said.
“The domestic gold price is likely to keep falling despite an increase in global gold prices, if the Kyat gains against the US dollar in the local forex market,” he said.
“The global gold price is not that high. But, the dollar exchange rate has been sliding,” he added.
The domestic gold price is positively related to global gold prices. It hit an all-time record of K1.3 million per tical (0.578 ounces, or 0.016 kilograms) in early September last year, when global gold prices reached a peak, crossing US$1,550 per ounce.
At present, the global gold prices have touched a high of $1,660 per ounce. But, the price of gold in the domestic market is pegged at just K1.18 million per tical. The trade has been regular, according to the MGEA.
With global gold prices on the uptick, domestic prices 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 a fresh peak of K1,300,000 on 5 September.
According to gold traders, in the month of November in the 2019-2020 financial year, the price moved in the range of 1,219,400 (2 November) and K1,173,000 (28 November). In December, the price reached the lowest level of K1,170,800 (3 December) and the highest level of K1,197,800 (28 December). In January, the lowest price was K1,191,600 (2 January) and the highest was K1,232,700 (8 January). Last month, the gold price touched the lowest level of K1,214,100 on 5 February and the highest level of K1,234,200 on 28 February, according to gold traders. (Translated by Ei Myat Mon)