Yangon Gold Entrepreneurs Association (YGEA) switched to the Central Bank of Myanmar’s auction exchange rate in calculating the reference price for pure gold, raising to over K2.9 million per tical (0.578 ounce or 0.016 kilogramme).
YGEA earlier calculated the price depending on the CBM’s reference exchange rate of K2,100, with some additions. It changed to the CBM’s auction exchange rate to set the reference gold price from 7 October 2023.
The YGEA set the reference exchange rate at K2.921 million per tical on 11 October. Nonetheless, pure gold fetches K3.42 million per tical in the grey market, indicating a price gap of K500,000 per tical between them.
The YGEA’s reference price and the unofficial gold market value vary on the US dollar exchange rate which is K3,360 in the grey market. The spot gold price gained a bit to around US$1,870 per ounce.
Myanmar’s gold price is highly tied to the spot gold price and US dollar exchange rate. The soaring dollar exchanging up to K4,000 drove the gold price up to a record high of K4 million per tical in late August 2023. — NN/EM
