Gold retreats as global gold spot prices, dollar fall

The domestic gold market sees a sharp downtick of K1.2 million per tical (0.578 ounce 0.016 kilogramme) within a month, according to the domestic gold market.
The soaring dollar pushed up the pure gold price to a record-high of K3.7 million per tical in late August. The prevailing prices of pure gold are K2.495 million per tical for selling and K2.465 million per tical for buying.
The drop in gold spot prices in international markets and Kyat strengthening in the forex market are contributing factors to the downward trend of pure gold in the domestic market.
The gold price hit US$1,700 per ounce in late August. At that time, the dollar jumped to over K4,500 in the unofficial markets.
The current gold spot price is $1,660 per ounce and a dollar is exchanged at around K2,800 in the black market.
The governor of the Central Bank of Myanmar (CBM) and officials of the Monitoring and Steering Committee on the Gold and Currency Market discussed matters regarding the stability of the gold and currency market on the afternoon of 14 September in Nay Pyi Taw.
At the meeting, the governor of the CBM remarked the further coordination of the departments concerned, gold bar transactions to be made with the banking system and operations of the banks, further support of the ministries concerned and the CBM to achieve price stability, and further cooperation between gold businesspersons and the officials.
The Ministry of Natural Resources and Environmental Conservation declared the sales of gold coins weighing one tical, 0.5 tical and 0.25 tical through state-run media on 2 September. The gold coins have been on sale at Nay Pyi Taw’s Gems Emporium from 5 September.
Gold coins were sold at K2.95 million per tical on 5 September, K2.85 million from 6 to 13 September and K2.8 million from 14 to 16 September respectively. The accumulated sales of gold coins stood at 455.75 ticals as of 16 September, according to the statement released by the Ministry of Natural Resources and Environmental Conservation.
The State’s gold coin market has expanded to Yangon and Mandalay regions from 23 September other than Nay Pyi Taw, the ministry issued an announcement through the state-run media on 22 September.
Last 28 September 2021, a dollar value hit a peak of over K3,000 in the black market, pushing the pure gold up to K2.22 million per tical.
Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on the Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability plays a crucial role in trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators.
Furthermore, the officials concerned will crack down on those people involved in charging a percentage for money withdrawals at the banks as shadow money. — NN/GNLM