Yangon Region Gold Entrepreneurs Association (YGEA) raised its reference price of pure gold to K2.2 million per tical as gold spot price climbed in international markets.
When the gold spot price was US$1,823 per ounce at the end of 2022, YGEA set the pure gold price at K2,147,500 per tical (0.578 ounce or 0.016 kilogramme).
At present, the gold spot price rallied to $1,864 per ounce. Therefore, YGEA raised the reference price to K2,196,000 per tical.
The gold spot price was up by $40 per ounce within days, whereas the YGEA added K50,000 to the reference price.
Despite the YGEA’s reference price, the price of pure gold hit K2,747,000 per tical in the domestic markets.
There is a gap of over K550,000 per tical between the YGEA’s reference price and 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 K2,850 in the black market.
Myanma Gems Enterprise (MGE) sold the gold at K2.5 million per tical despite the large gap.
On 4 January, as a celebration of the 75th Anniversary (Diamond Jubilee) Independence Day, new designs of 1 tical and 0.5 tical gold coins have been on sale at the respective shops in Nay Pyi Taw, Yangon and Mandalay of the MGE from 5 January 2023, along with other old coins.
Pure gold is offered at K2.5 million per tical. The gold coin amounted to K2.58 million per tical, including making charges of K80,000. The final price of gold is K1.292 million per 0.5 tical with making charges of K42,000. For 0.25 tical, the market value is K647,000 including making charges of K22,000.
The price of gold in the domestic market is positively related to the global gold spot prices and dollar exchange rate.
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.
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 of reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well. — NN/EMM
