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May 29, 2020

Gold price shows sharp rise, hits new record high of over Ks1 million per tical

 

With the US dollar gaining in local currency market, domestic gold price yesterday reached a record high of Ks1,008,300 per tical (0.578 ounce), according to domestic gold market.
Yesterday, gold price opened at Ks1 million and it reached up to Ks1,008,300 at the closing time, a remarkable high price within a day.
Since August, US dollar exchange rate has been above Ks1,500 dollar. Exchange rate yesterday increased up to Ks1,570-1,580.
Meanwhile, global gold price was US$1,199 per ounce.
The US dollar appreciation against local currency is a contributing factor to a surge in domestic gold price, said gold entrepreneurs.
The escalating trade war between the US and China has led to dollar appreciation in global market. Domestic gold price is remarkably increasing with the soaring US dollar exchange rate. Usually, domestic gold price varies depending on the global gold price. However, it has now gose up higher than usual.
“The rise in domestic gold price is due to increasing dollar exchange rate, despite no significant rise in global gold market. The dollar exchange rate appreciation negatively affects other sectors, hiking up commodity prices.
However, there is no significant number of gold investors like before, and so, gold market has not been adversely affected from this. Nevertheless, dollar price should be governed”, said U Tin Tun, chair of Mandalay Region Gold Entrepreneurs Association.
The prevailing gold price is the highest record in its history. This month, the price soared to a new all-time high in local market.
There are price gaps between Yangon and Mandalay gold markets. The market conditions also differ significantly.
Yangon market has seen buyers of gold products compared to previous months. Meanwhile, gold and jewellery shops in Mandalay are selling their products and raw materials from their goldsmiths, proving that the market is declining.
Pure gold bars have a demand in the market. Some are selling out their gold, concerned over possible price decrease in the gold market. As a result of this, they are making losses. Some are observing the market. Trading volume of heavy buyers of gold bars is less than before, with increasing gold price. They are also observing the market.
“Heavy buyers are hesitating to buy gold bars. Those who purchase a viss of gold, scaled, down their purchase volume to 50 ticals”, said U Ohn Myaing, secretary of Myanmar Gold Entrepreneurs Association.
This year, domestic gold price has remained above Ks930,000 per tical. It has recorded a remarkable increase in August and September.

 

By May Thet Hnin

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