Gold supply enough in market, exorbitant price hike unlikely
Supply of gold is enough in the market, and there is equilibrium of demand and supply. As a consequence, there is no reason to worry about dramatic price hike, said a responsible person from the Gold Entrepreneurs Association.
When asked by the Popular News about the possible price hike, Chairman of the Gold Entrepreneurs Association U Myo Myint said that high exchange rate of US Dollar will bot near direct impact of the Gold price. He said, “Traders are by nature making profit, taking advantage of the situation.
But the price can’t go up very high because we have sufficient supply.”
Currently, the gold price is under Ks 2.1 million. And the buying market is inactive now. The price of gold in world market is on the decline, but that of our local market is rather high partly because of unstable USD exchange rate and partly because of the Higher costs of gold mining, said U Myo Myint.
Exorbitant price can be attributed to manipulation of the price by the merchant but such greedy traders have been told bot to do so, added the chair.
The daily reference price is prescribed by the association. And gold is produced enough locally. Additionally, the Central Bank of Myanmar holds enough gold. As long as we can control the gold price, we can hold the USD exchange rate reasonably.
What worries the gold traders is the illegal cross border trading of gold. This being so, the association is taking necessary measures for prevention of illegal cross border gold trading.