YGEA reference price edges up to K2.276 mln per tical following global gold spot prices

Yangon Region Gold Entrepreneurs Association raised the reference price of pure gold to K2.276 million per tical (0.578 ounce or 0.016 kilogramme) tracking the increase in global gold spot prices, stated.
On 2 January 2023, global gold spot prices stood at US$1,823 per ounce and YGEA’s price was K2,147,500 per tical by the YGEA.
As the price rallied to $1,932 in the international market, the reference price increased to K2,276,000 per tical.
The figures indicated an increase of $109 per ounce and over K120,000 per tical.
Despite the YGEA’s reference price, the pure gold spiked at K2,850,000 per tical in the unofficial market, showing a large gap of K550,000 per tical.
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 K2,850 in the unofficial forex market.
The price of gold in the domestic market is positively related to the global gold spot prices and dollar exchange rate.
The soaring dollar exchange at over K4,500 pushed up the pure gold price 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. — NN/EMM