Pure gold price rallies to K2.873 mln per tical in market

The price of pure gold touched a high of K2.873 million per tical (0.578 ounce or 0.016 kilogramme) in the domestic market.
Tracking the increase in the gold spot price, the gold price stayed on the high side. The gold spot price was $1,880 per ounce.
Consequently, Yangon Region Gold Entrepreneurs Association’s reference price edged up to K2,214,800.
The figures indicated a price difference of over K650,000 per tical between YGEA’s price and the market price in the unofficial market.
YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,860 in the unofficial forex market.
The YGEA released a statement on 11 January that the actual market price settled in gold transactions was below K2.7 million per tical. Those unscrupulous traders are manipulating the market with malicious rumours to drive the price higher or lower for personal gains, as per the statement.
The market is quite slow-moving yet the price continues rising. The YGEA called for concerted efforts to control price fluctuation, as mentioned in the statement.
The price of gold in the domestic market is highly correlated with the gold spot prices and dollar exchange rate.
The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022.
For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots in Yangon, Mandalay and Nay Pyi Taw under the auction system. With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well.
Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 21 January 2022 as gold and currency market stability play a crucial role in the trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules or not in the domestic market, and proceeding 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/EM