MT News
As the pure gold price in domestic gold market plunged below Ks-2.5 million per tical and market exchange rate also dropped to under Ks-2,800 per dollar, the supply was higher than demand, according to the gold and currency markets on 30 September.
The per tical price of pure gold that reached an all-time high of Ks-3.8 million on 31 August, fell down daily after SAC sold the gold coins and continued to drop to Ks-2.56 million on 28 September. As SAC announced on 29 September that pure gold blocks and pure gold lumps each weighing three viss will be auctioned in Yangon and Mandalay, the pure gold price slid again to Ks- 2.46 million per tical on 30 September from around Ks- 2.56 million per tical on 29 September.
A gold entrepreneur said: “The gold price that manipulated by unscrupulous traders goes down to actual price now and will continue to drop.”
Similarly, after the market exchange rate hit a record-high of Ks-4,500 per dollar in the out-of-the-counter market on 31 August, was between Ks-3,300 and Ks-3,500 on 1 September and Ks-3,200 and Ks-3,650 on 2 September on spot market.
The dollar price fluctuated between Ks-3,200 and Ks-3,500 from September 12 to 19. Then, after the dollar price was between Ks-3,300 and Ks-3,100 from September 20 to 28, it dropped to below Ks-3,100. On 30 September, the exchange rate continued to fall under Ks-2,800 per dollar and the price was between Ks-2,600 and Ks-2,800 on spot market. Although the exchange rate is decreasing, the supply is high not to continue to drop.
A currency dealer remarked: “The buying price of dollar was Ks-2,850 and the selling price was Ks-2,700 in the open market and the buying price slid to Ks-2,700 and selling price Ks-2,600 in the evening. As the exchange rate was traded by only common people and main speculators do not monopolize the currency market, the price continued to go down.”
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