The domestic gold market sales fall again amid the COVID-19

18 September 2020

As the infections of the COVID-19 cases in the country are increasing beyond 2,000, a lot of businesses have faced difficulties in resuming the business. The gold market is one of the markets facing sluggish in the current situation. Since the wake of the COVID-19 outbreak in the country, the gold prices in Myanmar have reached new highs. The gold prices in Myanmar are currently trading to the value of around K 1.3 million per tical. Local gold prices are inching upwards, buoyed by prices globally in the gold market. The demand in the domestic gold market is low by comparing to the markets price before the COVID-19 outbreak.

U Win Myint, the secretary of the Yangon Gold Entrepreneurs Associations, spoke to MI Radio over the phone about the current demand in the domestic gold market. He said, “There are no buyers and also sellers in these days as many townships have to stay under the orders of stay-at-home to prevent the infections. But some keeps doing the business through the phone and online. The current gold market is open but as I have mentioned some don't interest in these markets more than the infections of the COVID-19. So we have lost a lot of demand in this year and the gold prices are also high and they are buoyed in the global gold market as well. We also hope that the gold market will be back to normal situation when the infections are kept control. We have a stable situation in the gold market before the COVID-19 resurgence in the country.''

At present the global gold price is US $ (1194) per ounce which is lower than last month’s price. Myanmar’s gold price has not been affected by the fall in the global gold price. It turns to the high side in the market even though the sales on the market are still cold.

U Moe Aung, the owner of the Tate Sein Gold shop, spoke to MI Radio how the gold shops faced struggles in this time.

“Even though there is a resurgence of the COVID-19 in Yangon, the government lets the shops to open by following the rules and regulation. As the government restricts the travelling, we have lost some customers from the countryside. We opened back the shops in May when the infection cases were stable. And the business is doing well with its regular customers. By comparing to the other years sale, we didn't have anything in this year. In this year, customers only buy the accessories like the earrings, the rings and the necklaces. I think we have to face a lot of struggles to resume our business in this time. I don't know how the infections can be affected but I know that we have to take time to resume back the business despite the fact that the infections are stable. Some customers bought us the gold and sold them back so our buyers have decreased. Due to this resurgence of the COVID-19 back in the country, we have had to face a lot of struggles even though the shops are not closed as the demands are low day by day."

The gold market generally is full of more sellers and buyers in the Thingyan and Thadingyut periods. But in this year not only the global gold market but also the domestic gold market faces the demands remain unchanged. The sale in the domestic gold market will still remain unchanged in this year till July.

The outbreak of the COVID-19 pandemic in the country forced the local gold market to shut down in April and the Market reopened back in the May with a minimum rate of 1.2 million kyats. The owners of the gold shops hope the demands and supply to be higher than after the resurgence of the COVID-19.From 2016 to 2019, the domestic gold market experienced the increases and decrease. Minimum gold price was above Ks (930,000) per tical in this year. It has been gradually increasing since the August reaching all-time highest price in this month.

Pomo, Soe Yadana and Zwe Mahn