Yangon, June (16)
The military council is attempting to lower the price of domestic gold through different approaches, but one tical of pure gold soared to more than 3.1 million kyats in the second week of June, gold entrepreneurs told Than Lwin Times.
The local gold price is impacted by the global gold price and the strength of the dollar, and so the gold price has recently skyrocketed.
The exchange rate for one dollar was around 2,900 kyats in the first week of June, and it has now jumped to nearly 3,000 kyats.
With the strengthening of the dollar, one tical of gold has risen from around 3 million kyats to more than 3.1 million kyats.
According to a gold dealer, the rise in domestic gold prices will impact gold trading, and if the price of the dollar cannot be controlled, prices may rise again.
He added, “The price of gold is currently unstable and changing over time, making it difficult to even predict a specific price. To keep the price of gold stable, we should make attempts to decrease the value of the dollar as quickly as possible”.
The military council has spoken to several gold entrepreneurs about the increase in domestic gold prices, although the price of gold remains high.
The military council set a reference price of 2.3 million kyats for one tical of gold, while it priced over 3.1 million kyats in the open market, with a price difference of more than 800,000 kyats.
The military council, on the other hand, is currently selling gold coins of various weights, such as 1 tical, 0.5 tical, and 0.25 tical, in an attempt to cut the domestic gold price, but in vain.
The price of one tical of gold reached a record high of roughly 3.5 million kyats during the last week of August last year, when the exchange rate of the dollar soared dramatically.
News-Than Lwin Times
Photo-CJ