By Nyein Nyein
With the gold price in the domestic market having hit above K1.3 million, the gold price will not drop below K1.3 million, said Chairman U Myo Myint of Myanmar Gold Entrepreneurs Association. “The price of domestic gold won’t drop. Last year, our gold price was stable at K1.2 million the whole year. The domestic gold price of K1.3 million will be the floor price this year,” he said. On 11 September, the global gold market saw the gold being sold for US$1,939 per ounce and the price of pure gold crossed K1,314,000 per tical (0.578 ounces, or 0.016 kilograms) in the domestic market.
The proper reason why the domestic gold price will not drop below K1.3 million is that there is illegal buying from foreign countries because there is a gap of K150,000 per tical between the global gold price and that of the domestic gold, he added. “The gap between the global gold price and Yangon gold price is K150,000 per tical. That’s why the people from India came to buy Myanmar gold from us previously. Now, Myanmar gold is demanded from Thailand as well. The price of domestic gold won’t be under K1.3 million. Although Myanmar citizens will not buy the gold, the domestic gold is still having demand from the neighbouring countries illegally because the price is lower than the global gold price,” stated MGEA Chair.
With the rising of the global gold price this year, the domestic gold price also hit the new record at K1,332,500 per tical on 7 August, according to the domestic gold market. Although the domestic gold price is above K1.3 million, the Dollar versus Kyat exchange rate is below K1400 per dollar. On 11 August, the exchange rate stood at K1343 per dollar. With slightly rising of the 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. Finally, it reached an all-time high of K1,300,000 on 5 September. In April, the coronavirus risks caused the shutdown of the gold market, and the market 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 price reached the lowest rate of K1,216,500 (1 July) and the highest level of K1,296,500 (27 July) and the lowest level of K1,286,500 (13 August) and the maximum price of K1,332,500 (7 August) according to the gold traders. (Translated by Hay Mar)