July 22
Despite gold price dip to US$1,700 per ounce in global markets, the price of pure gold continues its gains at K2,060,000 per tical (0.578 ounce, or 0.016 kilogramme), according to Yangon Region Gold Entrepreneurs Association (YGEA).
While the global gold price stayed over $1,800 per ounce in June, the pure gold fetched only K2,050,000 per tical in the domestic market.
At present, the global gold price slump does not affect the domestic gold market and the price remains strong at K2,060,000 per tical.
Another reason for the price increase is attributed to the depreciation of the Kyat against the US dollar in the local forex. A dollar is valued at over K2,300 in the unofficial market.
Moreover, a surge in production cost on mounting inflation drove the price up, said U Myo Myint, chair of YGEA.
The price of fuel used in gold mining escalated from K300,000 to K700,000 per barrel.
Only when production costs and global gold prices drop can the price slide.
At the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a record high of K2.22 million per tical in history.
Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability plays a crucial role in trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules not in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation in the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators.
Furthermore, the officials concerned will crack down on those people involved in charging a percentage for money withdrawals at banks as shadow money. — NN/GNLM
