THE prices of pure gold fell back to below K2 million per tical (0.578 ounce, or 0.016 kilogramme), according to the Yangon Region Gold Entrepreneurs Association (YGEA).
At present, 24-carat gold is worth K1,989,000 per tical.
The price dip happens to track the fall in global prices. The gold price stands at $1,865 per ounce in the worldwide market.
When a 24-carat gold hit $1,950 per ounce in the third week of April, the domestic gold fetched K2,085,000 per tical.
Therefore, the global gold price saw price dips of $85 per ounce within two weeks. Consequently, the domestic gold price was down by K96,000 per tical.
In a bid to stabilize the gold market, gold transactions had better made according to the reference foreign exchange rate of the Central Bank of Myanmar (K1,850 per USD), according to the CBM’s statement released on 3 April.
YGEA called for an urgent meeting on 8 April. The meeting determined to carry out gold transactions depending on the CBM’s reference exchange rate. However, it has not come into force yet, said U Myo Myint, chair of YGEA.
Last 23 April, officials from the department concerned, YGEA and Mandalay Region Gold Entrepreneurs Association, discussed gold price stability at the meeting.
Gold transactions on the CBM’s reference rate, at sight payment, and avoiding price manipulation were also discussed, according to YGEA.
The current market condition impedes transactions based on the reference rate. Yet, it will be implemented later, U Myo Myint continued.
The US dollar stands at K2,000 in the unofficial black market.
Additionally, the domestic gold price is highly correlated with the global gold price, YGEA stated. During 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. — NN/GNLM