Domestic gold price on high side amid kyat depreciation against dollar

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Gold jewellery displayed at a shop in downtown Yangon. Photo: Phoe Khwar
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Gold jewellery displayed at a shop in downtown Yangon. Photo: Phoe Khwar

After domestic gold price hit a new record high of Ks983,500 per tical (16.4g) on 28 August, it slipped a bit around Ks979,000 yesterday, according to local foreign exchange market.
Domestic gold price yesterday decreased a bit compared to last Tuesday’s price, with Ks980,500 at opening time in the morning and above Ks979,000 in the afternoon, according to Aung Thamardi Gold and Jewellery Shop and Refinery. However, it is still on the high side.
With dollar exchange value strengthening in the market, domestic gold price is fluctuating on the high side these days. The gold price was around Ks963,500 per tical on 25 August, 968,500 on 27 August and hit a new record of Ks983,500 on 28 August, according to domestic gold market.
Meanwhile, global gold prices are also seen increasing above $1,200 per ounce, with $1,206 per ounce on 25 August, $1,204 on 27 August, $1,210 on 28 August and $1,2014 yesterday. The local gold market is cool, with instability in the local gold price and the US dollar exchange rate. The demand is also low as the buyers are observing the market condition. The domestic gold price was recorded at a high of Ks948,500 per tical in mid-July, but the price dropped to Ks945,500 per tical on 18 July. Then, the price was on a high side again and hit a high of Ks961,300 on 24 August with the US dollar gaining. Meanwhile, the US dollar exchange rate to the kyat is gradually increasing in value and it reached above Ks1,500 in the second week of this month. The current dollar exchange rate is above Ks1,550 in the floating exchange system.
Last year, the global gold price fluctuated on account of instability in the global political climate and the appreciating of the US dollar price. However, the domestic gold price remained on the high side. In September 2017, the global gold price hit $1,348 per ounce and the local gold price also hit a record high of Ks958,000 per tical, triggering a drastic drop in the trading of gold.

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