THE gold market in Yangon sees an excess in supply these days, said U Ohn Myaing, the owner of a gold shop on 29th Street in downtown Yangon.
He added that gold shops around Lanmadaw, Latha and Pabedan townships, as well as Bogyoke Market, have seen low demand for gold wares.
Gold merchants say most middle-income customers sold the bulk of their gold to buy school equipment before the beginning of the school year in June.
The local gold market is likely to cool next month, said U Aye Cho, the coordinator of the Yangon Region Gold Entrepreneurs Association.
Myanmar’s gold market is influenced by fluctuations in the global market.
The value of one ounce of gold on the world market before the Thingyan Water Festival in April stood at US$1,263, while the price of Myanmar gold was K781,500 ($669) per tical (0.576 ounces).
The global gold price rose to $1,287 on 7 May. The price of Myanmar gold has similarly risen in value to K795,000 ($681) per tical.
The rising value of gold on the world market during the first week of April has resulted in the price of a tical of Myanmar gold rising by around K14,500, according to gold dealers.
Local gold merchants are struggling to export quality Myanmar gold.
“We need to change from traditional units of measurement to the global measurement system to enter the international market,” said U Myo Myint, the chairman of the Yangon Region Gold Entrepreneurs Association.
Tin Win Lay