Domestic gold prices reach record high due to dollar appreciation

 

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Gold jewellery and bracelets are displayed at a gold shop in Yangon. Photo: Phoe Khwar

DOMESTIC gold price has reached a record high of Ks961,300 per tical on 24 August this year due to dollar appreciation, according to the market.
The dollar exchange rate has reached above Ks1,500 per Myanmar kyat beginning in the second week of this month. The current dollar exchange rate exceeded over Ks1,530 in the market.
At the present time, world gold prices are US$1,191 per ounce, whereas local gold price set a new record in the domestic market, resulting in an inactive market.
U Ohn Myaing, secretary of Myanmar Gold Entrepreneurs Association, said; “Sellers and buyers are monitoring the market condition as gold prices are coupled with dollar appreciation.”
Due to the dollar appreciation, local gold market is cool. However, there are no huge impacts on the gold market, he added. Global currency is depreciating against the US dollar due to mounting trade war between the US and China and the US’s increased tariffs on China.
The price of gold in the domestic market was above Ks930,000 per tical within this year. The prices exceeded Ks940,000 per tical in mid-February. The local gold price was over Ks950,000 in the last week of January. The market has seen the maximum gold price of Ks957,000 per tical before.
Due to greenback appreciation, the price of imported products, including medicines, are increasing between 5-10% in the market, causing difficulties for businesspersons.
The Central Bank of Myanmar (CBM) is supplying dollars starting on 27 July in an attempt to stabilize the local currency exchange rate. Negotiations have also been made between the Ministry of Commerce and the CBM to seek the best way to solve this problem, U Soe Win, Union Minister for Planning and Finance, said at the regular meeting between local businesspersons and Vice President U Myint Swe, held on 24 August.

 

By May Thet Hnin

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