Local gold price breaches K1.2 mln again as dollar recovers

Gold jewellery displayed at a shop in downtown Yangon.  Photo: Phoe Khwar
Gold jewellery displayed at a shop in downtown Yangon.  Photo: Phoe Khwar

By Nyein Nyein

Due to a slight gain in the US dollar exchange rate in the local forex market, the price of the yellow metal in the domestic market has rebounded, crossing K1.2 million per tical (0.578 ounces, or 0.016 kilograms) after a four-day fall, said U Ohn Myaing, general secretary of the Myanmar Gold Entrepreneurs Association (MGEA).
Starting 7 March, the price of gold in the domestic market fell below K1.2 million per tical, while the dollar exchange rate was pegged at K1,350. On 10 March, the Central Bank of Myanmar purchased 9 million dollars from private banks, helping the dollar exchange rate to climb above K1,400 on 12 March.
“Under the CBM’s governance, the exchange rate has become stable. And, the local gold price has climbed again,” said U Ohn Myaing.
The domestic gold price is positively related to global gold prices.
In early September last year, the price of pure gold reached an all-time record of above K1,300,000 per tical in the domestic market, while the price of gold was pegged at US$1,550 per ounce in the global market, as per market data.
On 12 March, global gold price stood at $1,635 per ounce, while domestic gold prices crossed K1,210,000 per tical, according to the local gold market.
The internal gold market sees regular trading in open season, according to the MGEA.
With global gold prices on the uptick, the domestic price hit fresh highs last year, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 7 August), climbing to 1,200,000 (7 August-4 September), and then reaching a fresh peak of K1,300,000 on 5 September.
According to gold traders, in the month of November in the current fiscal, the local gold price moved in the range of 1,219,400 (2 November) and K1,173,000 (28 November). In December, it reached the lowest level of K1,170,800 (3 December) and the highest level of K1,197,800 (28 December). In January, the lowest price was K1,191,600 (2 January) and the highest was K1,232,700 (8 January). Last month, the gold price touched the lowest level of K1,214,100 on 5 February and the highest level of K1,234,200 on 28 February, according to gold traders. (Translated by Ei Myat Mon)

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