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YGEA reference price soars to K2.262 mln per tical tracking global gold spot prices

The reference price of gold climbed to K2.262 million per tical (0.578 ounce or 0.016 kilogramme) in the domestic market following the increase in global gold spot prices, Yangon Region Gold Entrepreneurs Association stated. At the end of last year, global gold spot prices stood at US$1,823 per ounce and the yellow metal was set at K2,147,500 per tical by the YGEA. As the price rallied to $1,920 in the international market, the reference price rose to K2,262,000 per tical. The figures indicated an increase of $97 per ounce and over K110,000 per tical. Despite the YGEA’s reference price, the pure gold spiked at K2,850,000 per tical in the unofficial market, showing a large gap of K580,000 per tical.

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 K2,880 in the unofficial forex market. Meanwhile, Myanma Gems Enterprise (MGE) sold the gold at K2.5 million per tical despite the large gap. On 4 January, as a celebration of the 75th Anniversary Independence Day (Diamond Jubilee), new designs of 1 tical and 0.5 tical gold coins have been on sale at the respective shops in Nay Pyi Taw, Yangon and Mandalay of the MGE from 5 January 2023, along with other old coins. Pure gold is offered at K2.5 million per tical. The gold coin amounted to K2.58 million per tical, including making charges of K80,000. The final price of gold is K1.292 million per 0.5 tical with making charges of K42,000.

For 0.25 tical, the market value is K647,000 including making charges of K22,000. The price of gold in the domestic market is positively related to the global gold spot prices and dollar exchange rate. The soaring dollar exchange at over K4,500 pushed up the pure gold price 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 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.

Source: The Global New Light of Myanmar

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