By Nyein Nyein
Following a weak trend in the global market, the gold price is likely to extend its drop in the domestic market, the gold traders said.
The gold price continues dropping in the global market. On 23 November, gold price hit $1,871 per ounce in the worldwide market. Then, the price fell to $1,771 per ounce on 30 November, with a significant drop of over $100 within one week.
Following the COVID-19 vaccine development, some major industries and businesses have restarted. The gold market has become sluggish as the investors returned to other sectors, said Chairperson U Myo Myint of the Yangon Region Gold Entrepreneurs Association (YGEA).
The domestic gold prices are declining following the global rate. The pure gold has touched below K1.3 million per tical (0.578 ounces, or 0.016 kilogrammes) since 25 November. It reached a low of K1,268,000 per tical on 30 November in the local market.
The daily transaction of 50 visses (a viss equals to 1.6kg) of gold were earlier seen in the market. Now, about 5-10 visses are rarely traded per day, he continued. According to gold traders, during the past four months, the domestic gold was priced with the minimum rate of K1,216,500 (1 July) and the maximum rate of K1,296,500 (27 July). The price moved in the range of, K1,286,500 on 13 August and K1,332,500 on 7 August. The local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October).
With global gold prices on the uptick, the domestic price hit fresh highs last year, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching an all-time record high of K1,300,000 on 5 September 2019.
(Translated by Ei Myat Mon)