The spot gold price continued to rise at US$1,985 per ounce, prompting the Yangon Region Gold Entrepreneurs Association (YGEA) to set the reference price higher at around K3.104 million per tical (0.578 ounce or 0.016 kilogramme) on 26 October.
The spot gold price surged to $1,985 per ounce on 26 October from $1,820 in early October, indicating a significant increase of over $165 within four weeks.
Pure gold fetches K3.43 million per tical in the grey market, showing a price difference of over K300,000 per tical between the YGEA’s reference price and unofficial market value.
Yangon Gold Entrepreneurs Association (YGEA) switched to the Central Bank of Myanmar’s exchange rate (K2,900) for interbank transactions in calculating the reference price for pure gold. At present, the US dollar is exchanged at K3,250.
As a result of this, the YGEA’s reference price and current market value vary depending on the US dollar exchange rate.
Myanmar’s gold price is highly tied to the spot gold price and US dollar exchange rate. The soaring dollar exchanging up to K4,000 drove the gold price up to a record high of K4 million per tical in late August 2023. — NN/EM
