Local gold price likely to continue slide

23 May


WITH the global gold price dip-ping,  the  price  of  the  yellow  metal in the domestic market is likely to remain on the low side, said U Ohn Myaing, Gen-eral Secretary, Myanmar Gold Entrepreneurs Association.


The  prevailing  price  of  gold  in  the  domestic  market  is around K1,044,500 per tical (0.578  ounces),  while  gold  is  priced at around US$1,273 per ounce in the global market.  “As global gold price has cooled a bit,  the  local  gold  price  has  declined to around K1,044,500. With the global gold price see-ing a downward trend, the do-mestic  gold  price  is  likely  to  continue  declining,”  said  U  Ohn Myaing.   At present, the demand  for  gold  is  decreas-ing  in  the  domestic  market,  he said.


The domestic gold price is positively related to the global gold price. During the second week of April, the global gold price crossed $1,300 per ounce, but it has now dipped to $1,273, according to gold traders.


With the global gold price increasing  earlier  this  year,  the  local  gold  price  hit  fresh  peaks,  reaching  K1,050,000  per  tical  between  17  and  29  January,  crossing  K1,060,000  between  30  January  and  7  February,  topping  K1,070,000  from 8-18 February, and rising above  K1,080,000  between  19  and  21  February.  Thereafter,  it gradually declined to reach the current level of K1,044,500 per tical.


Over the past few months, the  local  gold  price  reached  a  minimum  of  K1,043,4000  on  1  January  and  a  maximum  of  K1,061,000  on  31  January.  It  hit  a  low  of  K1,058,400  on  2  February  and  a  high  of  K1,087,300 on 20 February. In March,  the  price  touched  a  low of K1,048,600 on 30 March and  a  high  of  K1,069,000  on  21  March.  Last  month,  the  gold  price  reached  a  low  of  K1,037,200  on  24  April  and  a  high of K1,054,700 on 11 April, according  to  gold  traders.  


By Nyein Nyein
(Translated by Ei Myat Mon)