The price of pure gold continued to soar at approximately K3.8 million per tical (0.578 ounce or 0.016 kilogramme) in the grey market despite a decline in the spot gold price at around US$1,900 per ounce.
The gold price rally is attributed to the Kyat depreciation against the greenback in the shady dealings at K3,700.
Nonetheless, YGEA set the reference rate to over K2,244,300 per tical. There is a large price difference of over K1.5 million per tical between the YGEA’s reference price and the 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 over K3,700 in the unofficial forex market.
The US dollar exchange rate, therefore, influences the domestic gold market.
Mandalay Gold Entrepreneurs Association (MGEA) sold over seven visses of pure gold at a special price in two weeks of June to stabilize the gold price.
Myanmar’s gold price is highly tied to the spot gold price and the US dollar exchange rate. The soaring dollar exchanging at over K4,500 drove the gold price up to a record-high of K3.7 million per tical in late August 2022.
To lower the gold price, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw.
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. — NN/EM
