gold-696x522

Pure gold price rallies to K2.733 mln per tical in domestic market

The prices of pure gold hovered in the bear market with over K2.733 million per tical (0.578 ounces, or 0.016 kilogram) in the domestic market. The price has risen tracking the increase in global gold spot price, which stands at US$1,845 per ounce. Therefore, Yangon Region Gold Entrepreneurs Association (YGEA) raised the reference price to K2,173,500 per tical. There is a price difference of over K550,000 per tical between the YGEA’s reference price 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, said U Myo Myint, chair of YGEA. The US dollar is exchanged at K2,850 in the unofficial forex market. 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. Under 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.

Source: The Global New Light of Myanmar

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