By Nyein Nyein
The domestic gold market sees more sellers than buyers, said general secretary U Ohn Myaing of Myanmar Gold Entrepreneurs Association (MGEA).
The coronavirus consequences shut down the gold market and it was reopened on 18 May. At present, pure gold fetches about K1.22 million per tical (0.578 ounces, or 0.016 kilograms), he continued. Meanwhile, the global gold price hit a record high of US$1,766 per ounce. The domestic gold price does not rise as it should be when more people are selling than buying in the domestic market, he continued. “Along with the rise in global gold prices, the domestic gold price is likely to increase. However, the price cannot raise when demand is lower than supply,” he added. Following the global hikes, the domestic market cannot raise the price owing to the ban on international commercial flights amid the coronavirus crisis and Kyat gaining against the US dollar, he noted. A dollar exchange rate is priced below K1,400, as per data of the local currency market. At present, despite the reopening of the gold shops, it is time for the academic year and monsoon cultivation season. Having said that, the market witnessed selling rather than buying, MGEA stated. 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. Meanwhile, the global gold price currently crosses US$1,753 per ounce. A dollar exchange rate stands at around K1,400, as per market data. According to gold traders, during the past four months, the local gold price moved in the range of, K1,214,100 on 5 February and K1,234,200 on 28 February. In March, it reached the lowest level of K1,148,000 (31 March) and the highest level of K1,218,600 (4 March). In April, the coronavirus pandemic risks shut down the gold market, and the market was reopened on 18 May, with the minimum rate of K1,214,100 (27 May) and the maximum rate of K1,236,000 (18 May), according to gold traders.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. (Translated by Ei Myat Mon)