Gold supply exceeds demand in Yangon market

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Gold jewellery seen at shop in downtown Yangon. Photo: GNLM/Phoe Khwar

THE gold market in Yangon sees an excess in supply day-by-day, according to the owners of gold shops in downtown Yangon.
Starting in the second week of this month, the market sees an excess in supply than demand because of the rising value of the world gold price, gold sellers said.
For the time being, the gold prices in domestic market are over Ks910,000 per tical as the global gold price turned upward in mid-April, ranging from US$1,256 to 1,289 per ounce. The gold price in local market hit a high of about Ks912,000 per tical post-Thingyan period.
That is a key reason why people sold the bulk of their gold for profits. Some of them have an idea to raise funds from selling their gold to start a business, a gold trader said.
Roughly 80 per cent of gold owners sold their possessions at the gold shops in the city on a daily basis. An owner of gold and jewellery shop said only 20 per cent of customers came to the shop to purchase gold. The majority of customers bought the gold products worth no more than Ks150,000.  Market experts estimate that the domestic gold prices not likely to decline from the current record price and it is also depends on the value of Myanmar kyat.—200

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