Gold hits new record, market cool

Gold jewellery on display at a shop in Yangon. Photo: Phoe Khwar
Gold jewellery on display at a shop in Yangon. Photo: Phoe Khwar

With the US dollar gaining in the local foreign exchange market, gold price also reached a new record of Ks988,200 per tical (16.4 gm) yesterday.
Starting from the second week of August, the exchange rate of a dollar was around Ks1,500. It went above Ks1,557 per dollar in the evening of 10 September.
At present, global gold price is US$1,194 per ounce, which is lower than last month’s price. However, Myanmar’s gold price has not been affected by the fall in global gold price. Instead, it turned to the high side again.
This price is an all-time record high. With the gold price soaring in domestic market, the market is keeping cool.
“Domestic gold price is increasing, possibly related to dollar appreciating against local currency. Therefore, sellers are also observing the market, hoping for an increase in gold price. Buyers rarely purchase them”, said U Ohn Myaing, secretary of Myanmar Gold Entrepreneurs Association.
Gold market is still not adversely affected from the dollar exchange rate appreciation and cool trading, said gold entrepreneurs.
“The market is remaining cool. Some purchase gold in the morning and sell them back in the evening. Those making orders at the goldsmith are rarely seen”, said U Tin Tun, chair of Mandalay Region Gold Entrepreneurs Association.
An escalating trade war between the US and China resulted in dollar appreciation in international currency markets, including Myanmar. Minimum gold price was above Ks930,000 per tical this year, and it has been gradually increasing since August, reaching the all-time highest price this month.
At present, imported goods, including pharmaceuticals increased by 5 to 10 per cent minimum owing to the soaring dollar exchange rate. Most of the traders are struggling from competitive exchange rate in floating system.

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