THE price of pure gold rose to K2,048,00 million per tical (0.578 ounce, or 0.016 kilogramme) in the afternoon on 24 March, indicating a significant increase of over K50,000 per tical within one week, according to Yangon Region Gold Entrepreneurs Association (YGEA).
Last 16 March 2022, the price of gold was estimated at K1,995,000 per tical.
The domestic market saw gold bounce again to over K2 million on 8 March.
The rise in domestic gold price is tracking the global price, which stands at US$1,940 per ounce. Additionally, the US dollar exchange rate is worth over K2,000 in the local forex market at present.
The domestic gold price is highly correlated with the global gold price so it remains an upward trend, YGEA stated.
The price of a safe-haven asset is unlikely to fall in the coming months. Only when Kyat strengthens against the US dollar in the local forex market and the global gold price slides can the domestic gold price fall, a trader share his opinion.
Last 28 September 2021, a dollar value hit an all-time high of over K3,000 in the black market 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 play a crucial role in trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance to payment rules or not, proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal procurement of foreign currency, 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 the banks as shadow money. — GNLM