Domestic gold market sees no price hike despite global record uptick

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Gold jewellery on display at a shop in Yangon. Photo: Phoe Khwar

The domestic gold price cannot be hiked, along with the rises in international gold prices, said general secretary U Ohn Myaing of Myanmar Gold Entrepreneurs Association (MGEA).
At present, gold price hit a record high of over US$1,750 per ounce in global market. If domestic gold prices track the international prices, it can raise to K1.3 million per tical (0.578 ounces, or 0.016 kilograms). However, a pure gold fetches only K1.219 million per tical in domestic market, he continued.
Following the global hikes, domestic market cannot raise the price owing to the restriction on international commercial flights amid the coronavirus pandemic and Kyat gaining against the US dollar, U Ohn Myaing added.
In early September last year, the price of pure gold reached an all-time record of above K1,300,000 per tical in the domestic market, while the price of gold was pegged at US$1,550 per ounce in the global market. Meanwhile, global gold price currently crosses US$1,753 per ounce. A dollar exchange rate stands at around K1,400, as per market data.
According to gold traders, during the past four months, the local gold price moved in the range of, K1,214,100 on 5 February and K1,234,200 on 28 February. In March, it reached the lowest level of K1,148,000 (31 March) and the highest level of K1,218,600 (4 March). In April, the coronavirus risks shut down the gold market, and the market was reopened on 18 May, with the minimum rate of K1,214,100 (27 May) and the maximum rate of K1,236,000 (18 May), according to gold traders.
With global gold prices on the uptick, the domestic price hit fresh highs last 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 fresh peak of K1,300,000 on 5 September. (Translated by Ei Myat Mon)

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