By Nyein Nyein
The global gold has crossed over US$1,000 per ounce since 2019 and registered a decade high of over $1,770 per ounce, said Chairman U Myo Myint of Yangon Gold Entrepreneurs Association (YGEA).
Following the global hikes, the domestic gold price should have raised up to above K1.3 million per tical (0.578 ounces, or 0.016 kilograms). Yet, pure gold currently fetches about K1.219 million per tical, he continued.
In early September last year, the price of pure gold reached an all-time record of above K1,300,000 per tical in the domestic market, while the price of gold was pegged at just US$1,550 per ounce in the global market.
“The domestic gold price should have reached K1.3 million along with a rise in the global gold market. Myanmar people like to wear gold accessories. It is a kind of investment for local people. Some cash out gold during an emergency. When some purchased gold at K1.2 or 1.3 million, they cannot sell them according to global gold prices. We can see consumer loss in this,” he added.
Despite the upticks in the global gold market, the domestic market cannot raise the price as the foreign demand halted, coupled with Kyat gaining against the US dollar, he said.
Meanwhile, the global gold price currently crosses US$1,772 per ounce. A dollar exchange rate stands at around K1,387, as per market data.
Additionally, the domestic gold market sees more sellers than buyers, YGEA stated.
“At present, selling exceeded buying as people need to cash out gold to make the gold businesses back to new normal. Some gold shops witness the selling of around 6 visses per day,” YGEA chair continued.
There are over 10,000 gold shops in Yangon Region. Earlier, about 50 visses were daily traded, according to the YGEA.
According to gold traders, during the past four months, the local gold price moved in the range of, K1,214,100 on 5 February and K1,234,200 on 28 February. In March, it reached the lowest level of K1,148,000 (31 March) and the highest level of K1,218,600 (4 March). In April, the coronavirus risks shut down the gold market, and the market was reopened on 18 May, with the minimum rate of K1,214,100 (27 May) and the maximum rate of K1,236,000 (18 May), according to gold traders.
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 7 August), climbing to 1,200,000 (7 August-4 September), and then reaching an all-time record high of K1,300,000 on 5 September 2019. (Translated by Ei Myat Mon)