By Nyein Nyein
With the Kyat gaining against the US dollar, the price of gold in the domestic market has remained stable in spite of an increase in global gold prices, said U Ohn Myaing, general secretary of the Myanmar Gold Entrepreneurs Association.
“At present, gold price is on the rise in the global market. At the same time, the Kyat has become stronger against the US dollar in the internal forex market. Therefore, local gold price has not increased. Gold is fetching around K1.197 million per tical (0.578 ounces, or 0.016 kilograms) in the domestic market,” he said.
The domestic gold price is positively related to the global gold price. Global prices rose to over US$1,514 per ounce on 30 December, but domestic gold was priced at just K1.197 million. The stable price in the local market was attributed to the lower exchange rate. The US dollar exchange rate stood at K1,488, according to the gold market.
“In early September, the price of pure gold crossed K1.3 million per tical, tracking global cues and rumors in the local banking industry. Then, it dropped to K1.197 million on 30 December. The internal gold market is keeping cool,” said U Ohn Myaing.
With global gold prices on the uptick, the domestic price hit fresh highs this year, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 7 August), climbing to 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September.
According to gold traders, the lowest price for gold in June was K1,223,800 (14 September) and the highest was K1,307,000 (5 September). In October, the gold price touched the lowest level of K1,211,500 on 1 October and the highest level of K1,229,000 on 10 October. In November, the price moved in the range of 1,219,400 (2 November) and K1,173,000 (28 November), according to gold traders.
(Translated by Ei Myat Mon)
