Local gold price likely to continue falling to some K1.2 mln

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A man negotiates the price of gold jewellery at a gold jewellery shop in Yangon.  Photo: Phoe Khwar

The local gold price is expected to continue to drop, reaching a low of some K1.2 million per tical (0.578 ounces or, 0.016 kilograms), said U Ohn Myaing, general secretary of the Myanmar Gold Entrepreneurs Association (MGEA).
In early September, the price of pure gold crossed K1.3 million per tical in the domestic market, and it later plunged to K1,225,000 per tical on 15 October. The gold price is likely to maintain its fall, he added.
“It is possible that the price has further to fall. It is likely to hit a low of K1.2 million per tical”, said U Ohn Myaing.
The domestic gold price is positively related to the global gold price, which is currently pegged at US$1,493 per ounce in the global market, said gold traders.
At present, the gold price is on the low side. As it is harvest time and open season, the market has become busy with traders, he continued.
The domestic gold price has reached above K1.2 million per tical from 7 August and, thereafter, it kept rising, hitting a-record high of K1.3 million per tical on 5 September, said businessmen.
With global gold prices on the uptick, the domestic price has hit fresh highs this 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 reached the fresh peak of K1,300,000 on 5 September.
According to gold traders, the lowest price for gold in June was K1,099,000 (1 May) and the highest was K1,149,400 (31 June). Gold prices reached the lowest level of K1,142,000 on 1 August and the highest level of K1,260,500 on 29 August. Last month, prices moved in the range of K1,223,800 (14 September) and 1,307,000 (5 September).

By Nyein Nyein(Translated by Ei Myat Mon)

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