The price of the yellow metal in the domestic market stands only K1.18 million per tical (0.578 ounces, or 0.016 kilograms) in spite of the rise in global market, said general secretary U Ohn Myaing of Myanmar Gold Entrepreneurs Association (MGEA).
“Last April, the local gold price would have touched a high of K1.3 million per tical if it has risen amid global rally. However, it was priced at only K1.16-1.17 million per tical. That means the price is unaffected by global market,” said U Ohn Myaing.
Although the domestic gold price seems to be positively related to global gold prices, the domestic gold prices cross K1,180,000 per tical at the present time. But, global gold price stood at $1,700 per ounce.
In early September last year, the price of pure gold reached an all-time record of above K1,300,000 per tical in the domestic market, while the price of gold was pegged at US$1,550 per ounce in the global market, as per market data.
Currently, Yangon and Mandalay gold markets are temporarily closed, yet some gold and jewellery shops are still open for trade to help those gold traders who want to sell and buy the gold during coronavirus pandemic, according to the MGEA.
“The gold market is not officially opened yet. However, it depends on the sellers and buyers.
Small trading is seen in their own ways. The shops temporarily shutter the door to help contain the spread of coronavirus disease,” he continued.
With global gold prices on the uptick, the domestic price hit fresh highs last year, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 7 August), climbing to 1,200,000 (7 August-4 September), and then reaching a fresh peak of K1,300,000 on 5 September.
According to gold traders, during the past three months, the local gold price moved in the range of, K1,214,100 on 5 February and K1,234,200 on 28 February. In March, it reached the lowest level of K1,148,000 (31 March) and the highest level of K1,218,600 (4 March). Last month, the coronavirus risks shut down the gold market, according to gold traders.
(Translated by Ei Myat Mon)