The Price of Gold Reaches a New Record High

The price of Gold (99% pure gold) in local markets has set a new record high, reaching over K1 million per 1 tical (16.32 gram) on September 19.

Meanwhile gold price in global market was at $1,300 per ounce in May and dropped to $1,205 on September 17. But the gold price hike in local market is pushed up by strong dollar rate against weak Myanmar Kyat rate, said U Zaw Aung, owner of Tike Sein Gold Shop.

“The gold market becomes cold due to a higher gold price. It will not lower as long as dollar rate is high against Myanmar Kyat. Previous administrations and private organizations tried to rein in gold prices, but failed. It was not possible because it is not right to do — to rein in gold prices while commodity prices are sky high. There were times when gold prices went down despite a strong dollar rate, but it was not because of dollar, rather, lower gold prices in the global market. Now there is not a significant decrease of gold price in global gold market,’’ he said.

In local currency market, U.S dollar rate was at K1,565 per dollar on September 19, and it reached as high as K1,575 per dollar after Central Bank of Myanmar removed the reference rate for local exchange market. In an effort to bring down the sky high dollar rate, the Central Bank sold dollars to local financial institutions. The dollar rate was stable around at around K1,530 per dollar, but at that time, the price of local gold was around K957,000 per tical (16.32 gram).

Higher commodity prices are triggering a gold price hike in Myanmar despite being a gold production country, U Zaw Aung said.

Source: Myanmar Business Today

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