The domestic gold market is sluggish, said U Myo Myint, chair of the Yangon Region Gold Entrepreneurs Association (YGEA).
“The market is flat for now. Yet, the price moves up and down tracking the gold spot price.’’
On 2 February, gold spot prices hit US$1,955 per ounce and YGEA’s reference price was K2,303,200 per tical. As the gold price declined to $1,838 in the international market, the reference price was reduced to K2,165,400 per tical on 21 February.
Despite the YGEA’s reference price, the pure gold spiked at K2,857,000 per tical in the unofficial market, showing a large gap of K690,000 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 K2,860 in the unauthorized market.
The price of gold in the domestic market is highly correlated with the gold spot prices and dollar exchange rate.
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. — NN/EM