High global gold prices have raised the domestic gold price in the Myanmar market.
The price of gold in the domestic market declined to Ks913,000 per tical (0.578 ounce) in the second week of December but has now risen to some Ks946,500 per tical.
“The main reason for the increase in the domestic gold price is the upward trend in the global market. The market has not been performing well, owing to low demand. Those who bought gold at low prices are reselling it,” said U Aye Cho, a public relations officer from the Yangon Region Gold Entrepreneurs Association.
The prevailing price of gold is US$1,338 per ounce in the global market, while the global gold price is $1,339. The domestic gold price is pegged above Ks951,000 per tical.
However, global gold prices have not reached the expected high price due to the appreciation of the Kyat against the US dollar in the foreign exchange market, said U Aye Cho.
There is a gap of some Ks10,000 between international and local gold prices.
Since April, the gold market has experienced many fluctuations. The price of pure gold exceeded Ks900,000 per tical (0.578 ounce) in July. In the second week of September, the global gold price went up to $1,348 per ounce. The domestic gold price hit a record high of Ks958,000.
Global gold prices fluctuate because of the global political climate and high exchange rate of the greenback. The domestic gold price hovered on the high side in 2017, and it is also on an upward trend, said gold entrepreneurs.
By May Thet Hnin