Mizzima
From Myanmar to New York, gold markets are alert to the changing price of gold.
The gold price is rising in the global market in the backdrop of the bank collapses of Silicon Valley Bank (SVB) in US and Credit Suisse in Switzerland and the prices of the US dollar and US bonds and securities are also falling.
Three US banks have collapsed and another fourth bank is on the brink of collapse and then the gold price rose sharply in the global market.
The capital flight is experienced in the global stock markets with the expectation of another bank collapse in the US and then the investors shifted their investments to gold and then the gold price on 14 March Tuesday was over the US$ 1,900 per troy ounce level.
Three US banks namely Silicon Valley Bank, Silvergate Bank and Signature Bank collapsed in a week and then the fourth bank, San Francisco based Financial Republic Bank, is on the brink of collapse.
In the Myanmar domestic market, the price of 24 carat gold rose up to 2,950,000 kyats per tical (approx. 16.3 gms) and then the Military Council’s Central Bank of Myanmar (CBM) and Yangon Gold Entrepreneur Association (YGEA) are waiting for gold prices to fall back.
The CBM made an announcement on 20 March which says that the gold price fluctuations in the domestic market is not connected with the global market as the country is not importing and exporting of gold from the global market and also it says that the gold prices in spot market in the country posted on social media by gold traders are unofficial.
YGEA who is working under the directives given by the Military Council also issued a statement which says that the domestic gold market has no connection with the global market so that the gold prices mentioned in media are unofficial, echoing the CBM’s announcement.
A gold trader commented on these announcements as saying the domestic gold price has been set daily on the daily gold price and dollar exchange rate.
YGEA sets its gold reference price at 2,325,600 kyats per tical for 24 carat gold on 23 March but the gold is traded at around 2,950,000 kyats per tical in the open market.
The current gold price in the global market is US$ 1,974 per ounce as of Friday.
CNBC reported that the gold reached an all-time high of US$ 2,075 per ounce in August 2020 and the metal market experts forecast that it may reach the new record high level of US$ 2,200 per ounce.
