The price of gold in the domestic market has touched a high of K1.288 million per tical (0.578 ounces or, 0.016 kilograms), due to a surge in demand and a firm dollar, according to the Yangon Gold Entrepreneurs Association (YGEA).
“The gold price has been on an upward trend in recent days. Rumours of financial instability in the banking industry have sparked panic and people are turning to the gold market for investment. Those holding gold stocks are not selling them off. Domestic gold is expected to continue rising depending on the global gold price,” said a market observer.
The domestic gold price is positively linked to global gold prices. Gold is likely to continue making strong gains in the global market on the back of an escalating trade war between China and the US. The Kyat exchange rate against the dollar has also weakened to K1,535, according to the local forex market.
On 4 September, the price of pure gold crossed K1,282,000 per tical in the domestic market, and it reached a fresh peak of over K1,288,000 yesterday afternoon. Gold price is currently pegged at US$1,544 per ounce in the global market.
To stabilize the gold price and control the price level, fair trade is required, according to the YGEA. The association has already warned its members of legal action if any fraudulent case is detected during the price hike. Furthermore, traders have been asked to make payments at once, according to the YGEA.
At present, no price manipulation has been reported in the domestic market. The price will be stable after the rumour dies, said a gold and jewelry shop owner.
With global gold prices on the uptick, the domestic price has hit fresh highs this year. According to gold traders, in the month of January, the domestic gold price reached its lowest level of K1,043,4000 on 1 January, and the highest level of K1,061,000 on 31 January. It touched a low of K1,058,400 on 2 February and a high of K1,087,300 on 20 February. In March, the lowest price recorded was K1,048,600 (30 March) and the highest was K1,069,000 (21 March). In April, gold prices registered a low of K1,037,200 on 24 April and a high of K1,054,700 on 11 April. The lowest price for gold in May was K1,035,200 (2 May) and the highest was K1,059,200 (14 May). In the month of June, gold prices touched the lowest level of K1,055,000 on 1 June and the highest level of K1,125,500 on 25 June. The prices moved in the range of K1,099,000 (1 July) and 1,149,400 (31 July) in July. Last month, the prices ranged between K1,141,5000 and K1,263,000. —GNLM
(Translated by Ei Myat Mon)