Selling surpasses buying in domestic gold market

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Yangon Region gold market, which was temporarily suspended amid the COVID-19 resurgence, was back into business on 26 October. Photo: Phoe Khwar

By Nyein Nyein

The domestic gold market sees more sellers than buyers, said general secretary U Myo Myint of the Yangon Region Gold Entrepreneurs Association (YGEA). The gold market is sluggish amid the coronavirus resurgence. The daily transaction of 50 visses (a viss equals to 1.6kg) of gold were earlier seen in the market. Now, about five visses are rarely traded per day, he continued. “Only 4-5 visses of gold are daily traded. The traders have not come to the YGEA’s office yet,” he explained.
On 18 November, pure gold fetches about K1,309,000 per tical (0.578 ounces, or 0.016 kilogrammes) while the global gold price hit US$1,881 per ounce, local gold market data indicated. Last month, the global gold price reached a peak of $1,900 per ounce. Then, it dipped to $1,887 in November.
Following the US election, the stock market bounced back, and the global stocks jumped. Meanwhile, gold market experienced a slowdown, U Myo Myint shared his opinion. “Investors return to the stock market on the US presidential election result. Gold market witnessing choppy trade as the market reacts to the outcome of the US. The market cools down the gold market for now,” he said.
Nevertheless, local market relying on international gold prices did not shake up as it is supposed to be, due to the shortage of raw material, he added.
“At present, the old gold scrap and jewellery are refined into the pure gold bar. The raw material has not come from gold mining,” he said.
Yangon Region gold market, which was temporarily suspended amid the COVID-19 resurgence, was back into business on 26 October. The virtual trade is also available through the Zoom app, Yangon Region Gold Entrepreneurs Association stated.
There are more than 10,000 gold shops in the region, and about 50 visses of gold were traded earlier. During the first wave of COVID-19, Yangon gold market was closed between 29 March and 18 May.
According to gold traders, during the past four months, the domestic gold was priced with the minimum rate of K1,216,500 (1 July) and the maximum rate of K1,296,500 (27 July). The price moved in the range of, K1,286,500 on 13 August and K1,332,500 on 7 August. The local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October).
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 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching an all-time record high of K1,300,000 on 5 September 2019. (Translated by Ei Myat Mon)

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