Domestic gold price hits record high on spot gold rally, kyat depreciation

The domestic gold price rally extended, reaching a fresh peak of K4.84 million per tical (0.578 ounce or 0.016 kilogramme) on 10 April as spot gold price hit a high of approximately US$2,350 per ounce and kyat depreciated to K3,870 against a US dollar.
Despite the record-high gold price, the Yangon Region Gold Entrepreneurs Association (YGEA) set the reference price at K3,997,900 per tical, showing a large gap of over K840,000 per tical with the actual market value.
YGEA notified on 30 March that inspections were underway against those allegedly manipulating the market through a verbal deal.
Seven big gold shops in Yangon issue daily market prices three times a day. Nonetheless, those price speculators are attempting to raise the price by misleading price information that is not an actual transaction rate in the market. The YGEA condemned those unscrupulous traders and their dishonest acts. The YGEA asked its members to inform law enforcement agencies of the news regarding those manipulators.
The authorities are inspecting those alleged price speculators with the verbal deal in the market.
The CBM initiated an online trading market in which exporters/importers and private banks are engaged, with a view to developing the foreign exchange market and stopping price manipulation. The market exchange rates are officially announced on the online trading platform of the foreign currency market. Additionally, CBM let the authorized money changers sell the foreign currency as petty cash to those studying abroad, going on a pilgrimage and working abroad, according to the CBM’s notification on 30 March.
Some unscrupulous individuals are attempting to manipulate the market by spreading misinformation from the verbal deal or sparking public concerns with malicious news about the volatile exchange rate. Some are also engaged in transactions without a valid licence, violating the existing laws.
They will face legal action under the Foreign Exchange Management Law. CBM also informed the people of accurate information and data released by the departments concerned and authorized money changers.
CBM constantly states that it is essential to dispel false news. Upon tips off, the authorities inspect the price speculators, and legal proceedings against them are officially declared, according to its notification released on 30 March. — NN/EM