The price of pure gold gained to over K3.6 million per tical (0.578 ounce or 0.016 kilogramme) in the grey market tracking the rise in spot gold price to US$1,967 per ounce.
Another factor of the price surge is Kyat depreciation against the greenback at K3,400 in the unofficial market.
Nevertheless, the reference price set by Yangon Gold Entrepreneurs Association (YGEA) is only K3.088 million per tical, showing a large gap of over K500,000 per tical compared to the grey market’s rate.
The YGEA switched to the Central Bank of Myanmar’s exchange rate (K2,900) for interbank transactions in calculating the reference price for pure gold. At present, the US dollar is exchanged at approximately K3,400 in the grey market.
The US dollar exchange rate, therefore, weighs on the gap between the domestic gold market value and YGEA’s reference gold price.
The soaring dollar exchanging up to K4,000 pushed the gold price up to a record high of K4 million per tical in late August 2023. — NN/EM
