Local gold price likely to slip further: gold traders

11 June


Tracking the drop in the price of gold globally, the yellow metal is likely to continue its slide in the domestic market, said U Ohn Myaing, General Secretary, Myanmar Gold Entrepreneurs Association.


The prevailing price of gold in the domestic market is around K1,066,200 per tical (0.578 ounces), while gold is priced around US$1,327 per ounce in the global market.


“Pure gold was priced at K1,070,200-1,070,300 per tical last Monday and now, it has dropped to K1,066,200. Global gold prices are expected to cool slightly. Therefore, local gold price may pull back. In addition, the domestic gold market remains cool,” said U Ohn Myaing.


“At present, the demand for gold is declining in the domestic market as the academic year has started, and there are no festivals to celebrate,” he said.


“Domestic gold price is positively related to the global gold price. Global gold price is likely to remain low,” he added.


“But, we need to consider a possible price rise in the domestic market, when the global gold price climbs up,” said U Ohn Myaing.


With the global gold price increasing, the domestic gold price hit fresh peaks in early 2019, reaching K1,050,000 per tical in the period from 17 to 29 January, breaching K1,060,000 in the period from 30 January to 7 February, rising above K1,070,000 between 8-18 February, and above K1,080,000 between 19-21 February.


The price of gold in the domestic market reached a low of K1,043,4000 on 1 January and a high of K1,061,000 on 31 January. It touched a low of K1,058,400 on 2 February, and a high of K1,087,300 on 20 February. It recorded a low of K1,048,600 on 30 March and a high of K1,069,000 on 21 March. The price of gold registered a low of K1,037,200 on 24 April and a high of K1,054,700 on 11 April. Meanwhile, gold reached a minimum price of K1,035,200 on 2 May and a maximum price of K1,059,200 on 14 May, according to gold traders.


By Nyein Nyein(Translated by Ei Myat Mon)