October 19, 2017

As dollar drops, Myanmar gold follows

THE fall in the foreign exchange rate of the US dollar has had a negative knock-on effect on the price of one tical (0.576 ounces) of Myanmar pure gold, causing it to devalue by approximately K8,000 this month so far, according to gold sellers.
The US dollar was valued at K1,280 during the last week of January 2016, falling to K1,275 in the first week of February. As a result, the price of Myanmar pure gold has followed a similar decline, falling from K772,000 per tical down to K764,000.
“We will have to continue watching the price of the dollar in order to gauge the state of play of Myanmar pure gold. If the dollar continues to fall, so will Myanmar gold. Thus far, trading hasn’t been affected,” says U Zaw Aung, the owner of the Taite diamond and gold shop and member of the Myanmar Gold Entrepreneurs Association (MGEA).
He added that the value of an ounce of gold on the world market was US$1,120 in the last week of January, increasing by $5 to $1,125 in February, though this hasn’t made a difference in the value of Myanmar pure gold, which is affected by changes in the value of the US dollar exchange rate.
“Gold sellers are estimating a fall in the value of gold on the world market this month. But it won’t be the same as the fall of Myanmar pure gold – its decline in value will be much slower,” said U Maw Maw, the general manager of the Aung Thamar gold shop.
The value of Myanmar pure gold is dependent upon the value of the US dollar and gold on the world market. This is evident from last year’s events, in which the price of Myanmar pure gold rose with the rise in value of the dollar, and when the price of the dollar fell, the value of Myanmar pure gold followed suit, U Maw Maw continued.
The price of a tical of Myanmar pure gold on the morning of 4 February was valued at K764,000, and the value of the same amount of 15 karat gold was K720,000. At the same time, an ounce of gold on the world market was valued at $1,125, and the price of $1 was valued at K1,275, according to gold sellers.

Comments

Related posts

Translate »