Gold spot price elevates YGEA reference price to over K2.34 mln per tical

Yangon Region Gold Entrepreneurs Association hikes reference rate to over K2.34 mln per tical (0.578 ounce or 0.016 kilogramme) with the gold spot prices rising. On 1 March, gold spot prices hit US$1,833 per ounce and YGEA’s price was K2,159,500 per tical. As the gold spot price rallied to $1,989 per ounce in the international market, the reference price of the YGEA jumped to K2,343,300 per tical on 18 March. The figures indicated an increase of $156 per ounce and over 180,000 per tical within three weeks. Despite the YGEA’s reference price, pure gold climbed to K2,980,000 per tical in the unofficial market, showing a large gap of over K630,000 per tical with the reference price.

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 K2,870 in the unofficial forex market. The gold spot prices and dollar exchange rates influence the domestic gold price. The soaring dollar exchanging at over K4,500 drove the pure gold price up 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 under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw.

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.mUnder the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 21 January 2022 as gold and currency market stability play a crucial role in the trade facilitation.

The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules or not in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators. 

Source: The Global New Light of Myanmar