The reference price set by Yangon Region Gold Entrepreneurs Association (YGEA) has fallen back to around K2,080,000 per tical (0.578 ounce or 0.016 kilogramme) following the decline in global gold spot prices.
On 2 December, the global gold spot price rallied to US$1,800 per ounce. The YGEA’s reference price rose to K2,122,000 per tical accordingly.
The gold spot price dipped to $1,770 per ounce on 7 December, so YGEA scaled down the reference price to K2,088,000 per tical.
Therefore, the figures indicated a decrease of $30 per ounce in the global gold price and K34,000 per tical in YGEA’s reference price.
Despite the reference price, the market price still rocketed to K2,665,000 per tical. There is a price difference of K570,000 per tical between the reference price and the market price.
YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition. The dollar was exchanged at K2,840 in the market.
Therefore, there is a large gap between the YGEA’s price and the market price based on the unauthorized market dollar rate.
Meanwhile, YGEA called for the gold shops in Yangon Region to sell pure gold at K2,530,000 per tical, according to its notification released on 30 October 2022.
The soaring dollar exchanging at over K4,500 pushed up the pure gold price to a record-high of K3.7 million per tical in late August
In order for the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots in Yangon, Mandalay and Nay Pyi Taw under the auction system.
With an aim at reducing the gold price, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well. —NN/EMM