Gold prices fall as does demand

Tuesday, 29 December 2009 20:59 Kyaw Thein Kha


Chiang Mai (Mizzima) - There is a downhill trend in prices of 24 carat and 22 carat gold but demand remains sluggish, gold traders and gold shop owners said.

The price of pure gold rose to Kyat 650,000 per tical (about 16 gm) last week but fell to Kyat 590,000 this afternoon.

“Gold sales are sluggish at this time. The 24 carat pure gold price is Kyat 596,000 today, down from the earlier price of over Kyat 600, 000,” they told Mizzima.

“The price of 22 carat gold is Kyat 558,000 per tical, which is the lowest today. It rose to Kyat 560,000 per tical in the afternoon. Despite the falling price, the demand is still sluggish,” he said.

The closing price of 24 carat gold on Saturday was over Kyat 598,000 and the price of 22 carat gold was Kyat 594,000. The exchange rate was Kyat 1,005 against the US dollar. The exchange rate of US dollar is Kyat 1,008 today, gold and dollar market sources said.

Some members of the Gold Traders Association in Rangoon said that the gold price in Burma is controlled by Gold Traders Association (Upper Burma) and Gold Traders Association (Lower Burma).

“They cannot control and fix the gold price as they have claimed. The price is determined by supply and demand in the market. How can they control gold price?” a gold trader from Shwebonthar market in Rangoon asked.

Before the gold market opens every morning all pure gold traders in Rangoon must assemble at the office of the Gold Traders Association on Shwebonthar Street. And then the Association fixes the price for 24 carat pure gold for each day’s trading.

Though gold shop owners do not need to assemble at the office every morning, they are reported to comply with the price fixed by the association.

There are 300 members in the association and the membership fee is Kyat 300,000 while the annual fee is Kyat 50,000. But beginning next year the membership fee will be increased to Kyat 500,000 and annual fees will be Kyat 100,000, the association has announced.