Gold price hits all-time high as kyat’s slide continues

By DMG 13 Aug 2022

DMG Newsroom
13 August 2022, Sittwe  

The domestic gold price reached a new record high of more than K2.75 million per tical for 24-K gold on Saturday, according to gold shop owners. 

Gold prices have shot up since the military coup last year. Prior to the coup, the price stood at less than K1.4 million per tical. The prices of 22-K gold and 18-K gold have increased respectively to over K2.5 million and K1.9 million per tical. 

The owner of the Pwint Thit Sa gold shop in Sittwe, U Tha Htwe Sein, said: “The price increased by more than K100,000 today compared with yesterday. It is mainly because the kyat has further weakened against the US dollar. The exchange rate is around K3,000 to a dollar today. Gold prices may further increase if the exchange rate is up.” 

The unofficial exchange rate reached K3,010 per dollar on Saturday. In comparison, it stood at around K1,330 before the February 2021 coup. 

The gold price has increased sharply in recent weeks, from K2.3 million per tical for 24-gold at the end of July to K2.75 million on Saturday. 

At the same time, demand has reportedly declined, with more people pawning their gold items, according to gold shop owners. 

A gold shop owner who wished to remain anonymous said: “The business has slowed down a lot this week. And we are not accepting orders from customers to make gold items.” 

Despite the fact that the regime has fixed the price at K2.1 million per tical for 24-K gold, gold prices continue to rise in the market. 

Life has become increasingly difficult for ordinary people since the coup due to rising costs of living, including the prices of food, fuel, building materials and consumer goods.