Gold price stays elevated at K2.8 mln per tical in domestic market

The pure gold price rallied to K2.8 million per tical (0.578 ounce or 0.016 kilogramme) in the domestic market.
The price gain in the market is attributed to the rise in global gold spot prices.
When the global gold spot price stood at US$1,823 per ounce, the precious yellow metal fetched a high of K2.707 million per tical. At present, the pure gold price climbed to K2.83 million per tical with the global gold spot price reaching $1,882 per ounce.
Therefore, Yangon Region Gold Entrepreneurs Association (YGEA) raised the reference price to K2,173,500 per tical.
The figures indicated an increase of $60 per ounce and over K120,000 per tical within two weeks.
However, the reference price set by Yangon Region Gold Entrepreneurs Association (YGEA) is only K2,217,200 per tical at present.
Consequently, there is a price difference of over K600,000 per tical between the YGEA’s reference price and the market price.
YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,860 in the unofficial forex market.
Meanwhile, Myanma Gems Enterprise (MGE) sold the gold at K2.5 million per tical despite the large gap.
On 4 January, as a celebration of the 75th Anniversary (Diamond Jubilee) Independence Day, new designs of 1 tical and 0.5 tical gold coins have been on sale at the respective shops in Nay Pyi Taw, Yangon and Mandalay of the MGE from 5 January 2023, along with other old coins.
Pure gold is offered at K2.5 million per tical. The gold coin amounted to K2.58 million per tical, including making charges of K80,000. The final price of gold is K1.292 million per 0.5 tical with making charges of K42,000. For 0.25 tical, the market value is K647,000 including making charges of K22,000.
The price of gold in the domestic market is positively related to the global gold spot prices and dollar exchange rate.
The soaring dollar exchange at over K4,500 pushed up the pure gold price to a record-high of K3.7 million per tical in late August 2022.
For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots in Yangon, Mandalay and Nay Pyi Taw under the auction system.
With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well. — NN/EMM