By Nyein Nyein
The gold price in the domestic market has decreased again to under K1.3 million per tical (0.578 ounces), according to the domestic gold market.
7 August saw the price of gold rising and standing up at K1,332,500 per tical, which hit the highest record in the domestic gold history. After three weeks, the gold price has dropped to K1,297,000 per tical, which is a drop by K35,000 per tical on 28 August. Also, the global gold prices were record high with US$2,062 per ounce on 7 August and then, they fell to $1,939 per ounce on 28 August, a drop by over $120 per ounce in three weeks. Similarly, the dollar versus kyat exchange rate was K1,371 per dollar on 7 August. After three weeks, the exchange rate was dropped to K1,340 per dollar, a drop by K30 per dollar on 28 August.
With the exchange rate sliding in the market, people are making more investment in gold. Although the price of domestic gold is slightly sliding, the domestic demand is rising, according to the gold market. With slightly rising of domestic gold price together with the global gold price starting from 2019, the local gold price reached K1,000,000 per tical between 17 January and 21 February, K1,100,000 between 22 June and 5 August, K1,200,000 between 7 August and 4 September and, then earned an all-time high of K1,300,000 on 5 September 2019.
In April, the coronavirus risks caused the shutdown of the gold market, and the market was reopened on 18 May with a minimum rate of K1,214,100 (27 May) and a maximum rate of K1,236,000 (18 May). The price was moving in the range of K1,209,600 on 6 June and K1,219,500 on 1 June. The local gold reached the lowest level of K1,216,500 (1 July) and the highest level of K1,296,500 (27 July), according to the gold traders. (Translated by Hay Mar)