CNI News
16 Sept 2022
Gold prices, which rose to more than MMK 3 million per tical, dipped a little when the government sold gold coins but they may slip further if gold coins are sold in Yangon and Mandalay, according to some people in the gold market.
Last week, the prices of Academy pure gold rose to more than MMK 3 million per tical and dropped to MMK 2.8 million per tical this week.
Gold price fell again because the Ministry of Natural Resources and Environmental Conservation sold gold coins. If gold coins are sold in gold trading hubs like Yangon and Mandalay, gold prices may drop further, Ko Nay Lin Khant, a gold market analyst, told the CNI.
He said, “Gold prices are likely to slip further if gold coins are sold in Yangon and Mandalay. They first said, they would sell gold coins at MMK 2.7 million per tical. Actually, they sold gold coins at MMK 2.8 million per tical in Nay Pyi Taw. We think gold prices will fall further to about MMK 2.7 million per tical. It is difficult to fall back to MMK 2 million per tical currently.”
The entrance to Yangon. (GETTY IMAGES)
Recently, gold prices set new records to MMK 3.5 per tical and slipped back to MMK 2.87 million per tical currently.
Gold price decreased because many people are reselling their gold due to falling exchange rates and prices of gold in the global market, Secretary U Ohn Myint of the Myanmar Gold Entrepreneurs Association told the CNI.
“At present, the foreign exchange market is cooling down. So, gold prices fell back. Another factor is gold prices are also falling in the global market. Now, crops are being harvested in the entire country. So, some people resell their gold to invest in crop trading. The demand for gold has shrunk and gold prices have become stable.,” he told the CNI.
In the currency market, US dollars hit MMK 3,500 per dollar last week but dipped back to between MMK 3,200 and MMK 3,500 per dollar. The foreign currency market has yet to be stable.
The entrance to Mandalay. (Khant)
As the current fall in gold prices may be a sign of mustering momentum for another rise, this is no time to buy gold, Market Analyst Ko Nay Lin Khant told the CNI.
He said, “It was said that some people bought gold at MMK 2.8 or 2.9 million per tical because gold prices dipped below MMK 3 million per tical. However, I don’t want to encourage people to buy gold because prices take one step back before taking two steps forward.”
The prices of Academy pure gold dropped from MMK 3 million to MMK 2.8 million per tical but it is expected that gold prices will rise again before falling back, according to gold entrepreneurs.
Gold merchants said that the SAC aimed to stabilize gold prices at MMK 2.5 million per tical and US dollar prices at MMK 2,700 per US dollar.
