By Nyein Nyein
The gold price has seen a significant one-day drop of over US$40 in the global market following the global cues, said U Myo Myint, chair of Yangon Region Gold Entrepreneurs Association (YGEA).
On 23 November, gold price hit $1,871 per ounce in the global market. Then, the price fell to $1,824 per ounce on 24 November, with a big drop of over $40 within one day. Following the COVID-19 vaccine development, some major industries and businesses restarted. The gold market has become sluggish as the investors returned to other sectors, he said.
The domestic gold prices are slightly declining following the global rate. The pure gold fetched K1.3 million per tical (0.578 ounces, or 0.016 kilogrammes) in the local market. Nevertheless, the local market did not shake up as it is supposed to be, due to the shortage of raw material and a slight gain in the dollar, he added.
“The gold price is fluctuating at around K1.3 million per tical. For now, the old gold scrap and jewellery are refined into the pure gold bar as the raw material has not entered the Yangon market due to the COVID-19 health guidelines. Consequently, the price did not fall as much as we consider,” said the YGEA chair. The daily transaction of 50 visses (a viss equals to 1.6 kg) of gold were earlier seen in the market. Now, about five visses are rarely traded per day, he continued.
According to gold traders, during the past four months, the domestic gold was priced with the minimum rate of K1,216,500 (1 July) and the maximum rate of K1,296,500 (27 July). The price moved in the range of, K1,286,500 on 13 August and K1,332,500 on 7 August. The local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October).
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 5 August), climbing to over 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)