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May 25, 2020

Local gold prices bounce back on strong global cues; exceed K1.2 mln

Gold jewellery displayed at a shop in Yangon.  Photo: Phoe khwar
Gold jewellery displayed at a shop in Yangon.  Photo: Phoe khwar

By Nyein Nyein

With gold prices increasing in the global market, the price of the yellow metal in the domestic market has risen again to above K1.2 million per tical (0.578 ounces, or 0.016 kilograms) in the domestic market, according to gold traders.
On the afternoon of 7 January, pure gold fetched K1,218,000 per tical in the domestic market, while the price of gold was pegged at US$1,569 per ounce in the global market, as per market data.
The domestic gold price is positively related to the global gold price, which is currently experiencing some volatility. Global gold prices were pegged at over $1,477 per ounce on 21 December and two weeks later, they climbed to $1,569 per ounce, registering an increase of more than $90.
Despite a strong global gold market, the US dollar is weakening against the local currency. The US dollar exchange rate stood at K1,505 on 21 December and it has extended its drop to K1,473, registering a decline of K30, according to the gold market.
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, the lowest price for gold in June, 2019 was K1,223,800 (14 September) and the highest was K1,307,000 (5 September). In October, the gold price touched the lowest level of K1,211,500 on 1 October and the highest level of K1,229,000 on 10 October. In November, the price moved in the range of 1,219,400 (2 November) and K1,173,000 (28 November), and last month, it reached the lowest level of K1,170,800 (3 December) and the highest level of K1,197,800 (28 December), according to gold traders. (Translated by Ei Myat Mon)

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