Gold price soars to K1.2 mln; high demand pushes market to close

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A man negotiates the price of gold jewellery at a gold jewellery shop in Yangon. Photo: Phoe Khwar

The price of gold in the domestic market has touched a high of K1.2 million per tical (0.578 ounce or, 0.016 kilogram), with a surge in demand and shortage in supply leading to closure of the market, said U Myo Myint, the Chair of the Yangon Gold Entrepreneurs Association (YGEA), during a discussion on ways to stabilize the gold price, which was held at the YGEA office.
“Gold price has been on the upward trend in recent days, and high demand has even pushed for market closure in the last two days, along with a shortage of gold bars. The price is likely to remain on the high side. Those holding gold stocks must not sell them off. Domestic gold is expected to continue rising depending on the global gold price,” said U Myo Myint.
To stabilize the gold price and control the price level, fair trade is required, according to the YGEA. On 22 June, the price of pure gold crossed K1.1 million per tical, and it reached the newest peak of over K1.2 million on 8 August.
The domestic gold price is positively linked to global gold prices. Gold is likely to continue its strong gains in the global market on the back of an escalating trade war between China and the US. Gold price is currently pegged at US$1,489 per ounce in the global market.
The Kyat exchange rate against the dollar is K1,506-1,510, according to the local forex market.
The YGEA has already warned its members of legal action in any fraudulent case detected during the price hike. Furthermore, traders have been asked to make payments at once, according to the YGEA.
With global gold prices on the uptick, the domestic price has hit fresh highs this year.
According to gold traders, in the month of January, the domestic gold price reached its lowest level of K1,043,4000 on 1 January, and the highest level of K1,061,000 on 31 January. It touched a low of K1,058,400 on 2 February and a high of K1,087,300 on 20 February. In March, the lowest price recorded was K1,048,600 (30 March) and the highest was K1,069,000 (21 March). In April, gold prices registered a low of K1,037,200 on 24 April and a high of K1,054,700 on 11 April. The lowest price for gold in May was K1,035,200 (2 May) and the highest was K1,059,200 (14 May). Gold prices touched the lowest of K1,055,000 on 1 June and the highest of K1,125,500 on 25 June. Last month, the prices moved in the range of K1,099,000 (1 July) and 1,149,400 (31 July).

By Nyein Nyein(Translated by Ei Myat Mon)

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