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Gold demand down in domestic market

As the gold price is too fast to spike yet slow to fall in the domestic market, there are more sellers than buyers, said U Myo Myint, Chair of the Yangon Region Gold Entrepreneurs Association (YGEA). The daily transaction of 50 visses (a viss equals 1.6 kilogrammes) of gold are seen in the market. However, sellers outnumber buyers in recent days.

“Gold shops are buying approximately 50 visses of the gold transaction rather than selling these days, unlike the past trading,” U Myo Myint was quoted as saying. Additionally, Kyat devaluation against the US dollar is another reason for the price hike in the domestic gold market, he added. The global gold price stands at US$1,836 per ounce. The US dollar exchange rate is approximately K1,990 in the local forex market at present.

Meanwhile, the pure gold fetches up to K1,880,000 per tical (0.578 ounce, or 0.016 kilogramme). The gold price rally is likely to continue in the coming months. Only if the global gold price slides and Kyat appreciates on the US dollar can the domestic gold price fall, U Myo Myint shared his opinion. The domestic gold price is highly correlated with the international market. Last 28 September 2021, a dollar value hit an all-time high of over K3,000 in the black market and consequently, the pure gold reached a record high of K2.22 million per tical in history.

Source: The Global New Light of Myanmar