The price of gold slumped to K3.4 million per tical (0.578 ounce or 0.016 kilogramme) in the grey market.
Along with the Kyat depreciation against the US dollar at K4,000, the pure gold price hit an all-time high of K4 million per tical in August.
The pure gold price fell again to K3.4 million per tical with the Kyat devaluation against the US dollar slowing at approximately K3,300 in the unauthorized market.
However, YGEA set the reference rate to over K2,253,700 per tical. There is a large price difference of over K1.1 million per tical between the YGEA’s reference price and the price in the unauthorized market.
YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some additions, despite the US dollar being exchanged at around K3,300 in the unauthorized forex market. The US dollar exchange rate is, therefore, related to the domestic gold market value.
Mandalay Gold Entrepreneurs Association (MGEA) sold over seven visses of pure gold at a special price in two weeks of June to stabilize the gold price.
Myanmar’s gold price is highly tied to the spot gold price and US dollar exchange rate. The soaring dollar exchanging at over K4,500 drove the gold price up to a record high of K3.7 million per tical in late August 2022.
To lower the gold price, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw.
With an aim of reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well. — NN/EM
