YGEA’s reference price edges up to K2.1 mln per tical following global gold spot price

Yangon Region Gold Entrepreneurs Association (YGEA) hiked up the reference price of the yellow metal to K2.1 million per tical as gold spot price jumped in international markets.
When the gold spot price was US$1,645 per ounce on 1 November, YGEA set the pure gold price at K1,938,000 per tical (0.578 ounce or 0.016 kilogramme).
On 2 December, the gold spot price rallied to $1,802 per ounce. Therefore, YGEA raised the reference price to K2,122,000 per tical.
The gold spot price jumped by $150 per ounce within one month, whereas the pure gold price was up by K184,000 per tical.
Despite the YGEA reference price, the price of pure gold touched a high of K2,680,000 per tical in the domestic markets.
There is a gap of over K500,000 per tical between the YGEA’s reference price and market price.
YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition. The dollar was exchanged at about K2,900 in the black market.
Therefore, there is a large gap between the YGEA price and the market price based on the black-market dollar rate.
Meanwhile, YGEA called for the gold shops in Yangon Region to sell pure gold at K2,530,000 per tical, according to its notification released on 30 October 2022.
The soaring dollar exchanging at over K4,500 pushed up the pure gold price to a record-high of K3.7 million per tical in late August
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/GNLM