Yangon Region Gold Entrepreneurs Association (YGEA) dropped the reference price to K3.209 million per tical (0.578 ounce or 0.016 kilogramme) on 6 December, tracking a slight decrease in spot gold price at US$2,033 per ounce.
Spot gold price hit a high of US$2,086 per ounce, driving the YGEA to set the reference price higher to K3.28 million per tical on 4 December.
The pure gold market price fluctuated upward to K3.73 million per tical in the grey market. The gap between the YGEA’s reference price and the unauthorized market’s rate widened to over K520,000 per tical.
The YGEA switched to the interbank transaction rate in calculating the reference price for pure gold. The US dollar is currently exchanged at approximately K3,530 at the over-the-counter market.
The US dollar exchange rate influences the domestic gold market value gap and YGEA’s reference gold price.
When the dollar exchange rate surged to K4,000, the gold price peaked at K4 million per tical in late August 2023. — NN/EM