Domestic pure gold price remains strong at over K2.9 mln despite tumbles in international gold markets

Although the international markets experienced a big slump in gold prices, the domestic pure gold price stayed high at over K2.9 million per tical (0.578 ounce or 0.016 kilogramme).
On 14 September, the spot gold market reported US$1,700 per ounce. Then the price slid to $1,650 per ounce on 16 September.
The spot gold market prices show a decrease of $50 per ounce in two days.
Despite the fall in international markets, the domestic gold market did not track the prices of the spot gold market and hit approximately K3 million. The prevailing price of precious yellow metal is about K2,930,000 per tical.
This is attributed to the high Kyat-Dollar exchange rate in the local forex market. The US dollar appreciates around K3,400 against the local currency.
In late August, the dollar hit a tremendous high of over K4,500 in the unofficial markets. Following the depreciation of Kyat, the pure gold price reached a record-high of K3.7 million per tical.
The governor of the Central Bank of Myanmar (CBM) and officials of the Monitoring and Steering Committee on the Gold and Currency Market discussed matters regarding the stability of the gold and currency market on the afternoon of 14 September in Nay Pyi Taw.
At the meeting, the governor of the CBM remarked the further coordination of the departments concerned, gold bar transactions to be made with the banking system and operations of the banks, further support of the ministries concerned and the CBM to achieve price stability, and further cooperation between gold businesspersons and the officials.
Last week of September 2021, a dollar value hit a peak of over K3,000 in the black market, pushing the pure gold up to K2,220,000 per tical.
Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on the Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability plays a crucial role in trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators.
Furthermore, the officials concerned will crack down on those people involved in charging a percentage for money withdrawals at the banks as shadow money. — NN/GNLM