Gold price slides K80,000 from record high of K1.3 mln in one week

Within one week of touching a high of over K1.3 million per tical (0.578 ounces or, 0.016 kilograms), the price of gold in the domestic market has dropped by K80,000, according to the Yangon Gold Entrepreneurs Association (YGEA).

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Saleswomen work at a jewelry shop in Yangon.  Photo: Phoe Khwar

“The domestic gold price has slumped as the global gold price has dropped. It hit the highest record of over K1.3 million per tical on 5 September, and shortly thereafter, it plummeted to K1.22 million. The price is likely to extend its fall,” said U Myo Myint, the chairman of the YGEA.
“The domestic gold price will continue to fall further if the global gold price drops. At present, global gold price is heading downward,” said U Myo Myint.
Despite a fall in the local gold market, trading has cooled, he added.
“Gold price had risen sharply in recent days. To stabilize the gold price and control the price level, the association had warned its members of legal action, if any fraudulent case was detected during the price hike. Furthermore, traders were asked to clear payments at once. Members who are found defaming the association would be dismissed, as per the association’s Code of Ethics,” said U Myo Myint.
“Additionally, officials from the Ministry of Home Affairs have inquired whether the price hike is related to irregular trading or not,” he added.
“The authorities have been monitoring the gold price three times a day. Gold is traded freely within the country. There are no trade barriers. The officials did not intervene, but just inquired about the price,” he said.
Rumours of financial instability in the banking industry have sparked a price hike and led to dollar gaining in the market.
“The banking industry needs to shut down the rumours immediately. A quick comment can stop the rumours. Also, it will not spark panic. As it takes a certain amount of time to stop the rumours, the price soared,” said U Myo Myint.
The price of pure gold rose above K1.2 million per tical in the domestic market on 7 August, and it reached a fresh peak of over K1.3 million on 5 September, said gold traders.

With global gold prices on the uptick, the domestic price has hit fresh highs this year, rising above K1 million per tical between 17 January and 21 February, crossing K1.1 million (22 June to 5 August), climbing to K1.2 million (7 August-4 September) to reach a fresh peak of K1.3 million on 5 September.
According to gold traders, in the last three months, gold prices touched the lowest level of K1,055,000 on 1 June and the highest level of K1,125,500 on 25 June. The prices moved in the range of K1,099,000 (1 July) and 1,149,400 (31 July) in July. Last month, the prices moved between K1,142,000 (1 August) and K1,260,500 (29 August).

By Nyein Nyein(Translated by Ei Myat Mon)

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