Pure gold price edges up to K2.68 mln per tical tracking increase in global gold price

The price of pure gold inched higher to K2,680,000 per tical (0.578 ounce, or 0.016 kilogramme) following the increase in global gold spot prices, according to the domestic markets. The reference price issued by the YGEA has also risen simultaneously. On 4 November, the YGEA’s price was K1,936,000 per tical when the global gold spot price was US$1,644 per ounce. On 5 November, the global gold price increased to $1,681 per ounce, the reference price by the YGEA also climbed up to K1,980,000 per tical.

There is a price gap of about K700,000 per tical between the price set by the YGEA and the 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 K3,000 in the black market. Therefore, there is a large gap between the YGEA’s price and the market price based on the black-market dollar rate.

Meanwhile, YGEA called for the gold shops in Yangon Region to sell the 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 pure gold price to a record-high of K3.7 million per tical in late August. In order 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 price, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well.

Source: The Global New Light of Myanmar

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