Domestic gold price rises to K1.3 mln tracking global cues

LOCAL NEWS

By Nyein Nyein

The domestic gold prices rose to K1.3 million per tical (0.578 ounces, or 0.016 kilograms) on the back of a-record rise in international global market, according to Yangon Gold Entrepreneurs Association (YGEA). On 1 July, a yellow metal was priced around K1,220,000 per tical. It gradually went higher and reached a high of K1,300,000 per tical on 22 July. Meanwhile, gold price was pegged at US$1,780 per ounce on 1 July and hit an all-time high of above $1,850 per ounce on 22 July. Additionally, local forex market sees a slight gain of US dollar against Kyat. This is another cause of gold price hike. A dollar to Kyat exchange rate on 1 July was at K1,372, whereas a dollar value rose to K1,410 at the opening price on 22 July.
The foreign demand on gold from neighbouring markets of China and India raised the domestic gold price.
Nevertheless, despite the global hikes, the domestic gold price does not rise at the same rate. It is lower than global rate.
In early September last year, the price of pure gold reached a 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. At present, the domestic market sees more sellers more than buyers, the YGEA stated.
According to gold traders, during the past four months, the local gold 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). The price moved in the range of, K1,209,600 on 6 June and K1,219,500 on 1 June, 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 a record high of K1,300,000 on 5 September 2019. (Translated by Ei Myat Mon)

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