October 19, 2017

Domestic gold price unstable, gold market declines

A sales man anticipates customers as gold price rises at a shop in Yangon. Photo: Phoe Khwar

The domestic gold market is unstable, with the gold price fluctuating in the global market, said U Kyaw Win, the secretary of Myanmar Gold Entrepreneurs Association.
“The main reason for the increasing price in the domestic gold market is the high global price, plus the high dollar exchange rate”, U Kyaw Win said. “After North Korea fired a missile over Japan last month, the New York gold price soared. The gold price is unstable this year, but it is still on the rise”.
The gold price reached its highest peak so far on 8 September, when the global gold price was US$1,348 per ounce, while pure domestic gold reached its all-time highest price of over Ks950,000 per tical (0.578 ounce). But shortly thereafter, the price slipped a bit, at US$1,297 per ounce for global gold and Ks943,500 per tical of pure local gold. Since April, the gold price has been on an upward trend. The price reached above Ks900,000 per tical in July and remained on the rise.
Apart from mid-May and early July, the gold price this FY maintained a high price in the domestic market, causing a cooling of the retail market.
“Transactions in the gold and jewellery shops is currently declining. The buyers and sellers are observing the market due to price fluctuation”, said U Kyaw Win.
The gap between the global gold price and the domestic price is Ks5,000- 10,000.

 

By May Thet Hnin

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