By Nyein Nyein
The domestic gold price has risen to over K1,320,000 per tical (0.578 ounces, or 0.016 kilogrammes) and it is likely to increase continuously, said U Myo Myint, the chairman of Yangon Gold Entrepreneurs Association (YGEA).
With the rising of global gold prices, the dollar exchange rate and less entering of raw materials from the regions, the domestic gold prices are rising. If it is increasing continuously like now, the domestic gold price will be likely to grow continually, he added.
“With the increase of the global gold price, the US dollar exchange rate is slightly rising. Also, there are less entering of the raw materials because of long closing days. Sometimes, we don’t have raw materials, and we are generating with the
old items. However, the gold price is hard and has risen to K1,321,000 per tical,” said U Myo Myint.
Now, the global gold price hit US$1,857 per ounce on 16 December. Additionally, the local forex market sees a slight gain of US dollar against Kyat. That is another cause of gold price hike. The dollar against the Kyat exchange rate is around K1,400 per dollar.
After the first wave of COVID, the pure domestic gold price hiked to K1,331,500 per tical, which is higher recorded in four months. However, the domestic gold market sees more sellers than buyers. Previously, about 50 visses of gold were traded daily in the domestic market, but now, only five visses of gold are being traded.
According to the gold traders, during the past four months, the domestic gold was priced with a minimum rate of K1,216,500 (1 July) and the maximum rate of K1,296,500 (27 July). The price moved in the range of K1,286,500 on 13 August and K1,332,500 on 7 August. The local gold price reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). In November, the domestic gold was priced with a minimum rate of K1,270,000 (30 November) and the maximum rate of K1,317,000 (9 November).
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 5 August), climbing to over K1,200,000 (7 August-4 September), and then reaching an all-time record high of K1,300,000 on 5 September in 2019. (Translated by Hay Mar)