Gold traders urged to make outright purchase: YGEA

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Gold jewellery sets are seen at one of the gold shops in Yangon. Photo: Phoe Khwar

Yangon, 5 Feb _ The Yangon Gold Entrepreneurs Association (YGEA) released a statement on 4 February that the gold traders should make an outright purchase.
Regarding the gold price stability in the market, the YGEA called an emergency meeting on 4 February before the gold market started. Then, the YGEA issued four decisions.
These decisions are: not to accept the rumours that K5,000 or K10,000 notes will be confiscated; to encourage the people who are trading with fear and trading with restraint; to deal with down payment system and to comply with the COVID-19 rules and regulations set up by the Ministry of Health
and Sports.
The Central Bank of Myanmar (CBM) also made a statement on 3 February that rumours were spreading in the country that K5,000 and K10,000 notes are revoked. The banks in the country would close because of current situations in the country. So, the CBM urged the people to keep their trust in the Myanmar currency. All the banks have been instructed to provide regular service.
On 3 February, the domestic gold price skipped sharply based on the rumours that the K5,000 and K10,000 notes would be demonetized. Although the domestic gold price was only K1,340,000 per tical (0.578 ounces, or 0.016 kilogrammes) on 2 February, the gold price went up to K1,410,000 per tical on 3 February.
Besides, on those days, the domestic gold market sees more buyers than sellers. However, the domestic gold price was a bit more stable on 5 February, and the pure gold price was opened at K1,367,000 per tical. Currently, the supply of gold is still on the rise, according to the domestic gold market.
Further, the US dollar exchange rate has been rising against Myanmar Kyat and is over K1,400 per dollar. Although the domestic gold price is rising, the world gold price is on the decline. The global gold price stood at US$1,856 per ounce on 2 February, and it plunged to $1,794 per ounce on 5 February. (Translated by HM)

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