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August 13, 2020

Global gold price hits record high by over $180 within July

(FILES) Salewomen wait for customers at a gold shop in Yangon on 11 April 2017. Photo :  Phoe Khwar
(FILES) Salewomen wait for customers at a gold shop in Yangon on 11 April 2017. Photo : Phoe Khwar

By Nyein Nyein

The global gold price hit a high record by over US$180 within a month, according to the gold market. The price was pegged at $1,784 per ounce on 1 July and hit an all-time high of above $1,970 per ounce on 31 July, which is an increase by over $180 in a month. “The price of global gold has risen because of the mounting tension between America and China,” said General Secretary U Ohn Myaing of Myanmar Gold Entrepreneurs Association (MGEA). “The main reason for the rising of global gold price can be attributed to the tension between the US and China. There are also many other causes among which the Iran issue is one. People are buying gold, worried over the tension between the US and China which may lead to a substantial crisis. This is the reason why the price of global gold is rising in the market,” he added. Although the global gold price is a record high, the domestic gold price has not risen yet, even declining down to around K80,000 per tical. At present, the local gold price is standing at K1,295,000 per tical (0.578 ounces, or 0.016 kilograms) in the domestic market, he noted.
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 just $1,550 per ounce in the global market. At present, the local gold price is stable in the market because of the demand and supply of the gold being at the equilibrium in the local gold market, he stated. Moreover, the dollar to kyat exchange rate was at K1,373 per dollar. During the past four months, the local gold price reached the lowest level of K1,148,000 (31 March) and the highest level of K1,218,600 (4 March). In April, the coronavirus risks shut down the gold market, and the market was reopened on 18 May, with the minimum rate of K1,214,100 (27 May) and the maximum rate of K1,236,000 (18 May). The price moved in the range of, K1,209,600 on 6 June and K1,219,500 on 1 June, according to gold traders. With the 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 K1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019. (Translated by Hay Mar)


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