THERE is no price fluctuation in the domestic gold market between 16 May and 6 June, with K2,050,000 per tical (0.578 ounce, or 0.016 kilogramme) on 6 June 2022, according to the Yangon Region Gold Entrepreneurs Association (YGEA).
Global gold price and exchange rate against the US dollar are contributing factors to the price volatility. At present, gold is stable at US$1,850 per ounce. Similarly, the US dollar value remains unchanged at K2,000 in the unofficial forex market.
In a bid to end the black market and stabilize the volatile prices, the transaction of gold bars has to be carried out in the YGEA office. Additionally, YGEA urged the members and gold traders to make gold transactions with immediate payment. Cross-border trade is not allowed without reporting to the association, according to its statement released on 17 May.
The statement includes seeking a trade licence for gold shops, a licence for gold bar transactions and taking actions against those unauthorized dealers involved in online trade platforms.
After that, gold shops engaged in gold bar transactions must make an inventory list of gold bar and gold trading reports. Those individuals and gold shops will face legal actions under the existing law if they fail to follow that statement, according to the YGEA.
Moreover, YGEA also decided on 4 May to import raw gold from foreign countries in the coming rainy season not to fall short of raw metal supply.
In a bid to stabilize the gold market, gold transactions had better made according to the reference rate of the Central Bank of Myanmar (K1,850), according to the CBM’s statement released on 3 April.
Nonetheless, it has not come into effect yet, said U Myo Myint, chair of the YGEA. — NN/GNLM