Yangon, February (23)
The Yangon Gold Entrepreneurs Association (YGEA) issued a statement on February 23 requesting gold shops and dealers to sell gold at the set price because the reference gold price does not work in the market.
According to the guidance of the Monitoring and Steering Committee on the Gold and Currency Market, all gold shops and gold traders were informed to sell spot gold at a set rate of Ks 2,790,000 per tical.
The price of gold opened on the morning of February 23 at around Ks 2,850,000 per tical of spot gold, while the gold reference price of YGEA is only around 2,160,000 kyats, so the price difference is almost Ks 700,000.
According to a gold trader, YGEA’s reference gold price is very different from the price in the external market, so there is concern that gold will flow to foreign countries, and the price has been fixed.
In addition, the YGEA said that it is necessary to monitor whether gold is sold in the market at the set price, and that some gold shops can trade with two types of vouchers.
At the moment, the price of gold is not stable, so gold buyers and hoarders are monitoring the situation and trading is still stagnant.
Although the military council is selling gold coins in some townships in three different denominations—1 tical, 0.5 tical, and 0.25 tical—in an effort to reduce the price of gold, the price of gold has not decreased as much as expected because it is being sold at the price of the external market.
In the final week of August last year, the local gold price rose to a record high of almost 3,500,000 kyats per tical as a result of the strengthening of the dollar.
Under the NLD government, the price of gold was only around 1,300,000 kyats per tical, but after the military coup, the price has nearly tripled with price volatility.
News-Than Lwin Times