Pure gold price hit record high of over K2.8 mln per tical in domestic markets

The price of pure gold reached an all-time high of over K2.8 million per tical (0.578 ounce or 0.016 kilogramme) in the markets, said gold traders.
The record price is attributed to the Kyat depreciation against the safe-haven US dollar. The exchange rate against a US dollar is worth over K3,000 in the unofficial forex market.
Despite the price spike in the markets, Yangon Region Gold Entrepreneurs Association set the pure gold price at K2,055,000 per tical on 26 August.
The association determined the price depending on the Central Bank of Myanmar’s reference exchange rate against a dollar at K2,100, YGEA Chair U Myo Myint told the Global New Light of Myanmar (GNLM).
There is a large gap of over K700,000 between the market price and the YGEA’s set price. The black market might arise again following the soaring dollar, resulting in the suspension of gold bar transactions, he stated.
The authorities also interrogated some gold traders and currency exchange operators accordingly in end-July.
During the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a high of 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 play 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, proceedings 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. — NN/GNLM