ူုNew Delhi (Mizzima) – Gold prices in the Burmese market reached record highs today, amid climbing global valuations, Rangoon merchants said.

The gold price in Burma reached 641,000 Kyats per tical (about 16 grams) today after hitting 613,000 Kyats per tical at the end of November, according to gold shops in Pabedan Township, Rangoon, which is the main gold market in Burma.                                          
“This is the unprecedented record high price”, a gold-shop owner from 29th Street in Pabedan Township told Mizzima.

The price had fluctuated between 590,000 and 600,000 Kyats from the end of March to the beginning of last month, traders said. It then rose to 670,000 Kyats at the end of last month. At that time, the global gold price was at about US$1,150 per ounce (28 grams). It dropped to 615,000 per tical on May 3 and regained by 25,000 Kyats within two weeks. Today’s global gold price is US$1,238 per ounce.

A gold-shop owner from Shwebonthar Street said that he was unaware of the cause of the rising prices and that they were unable to say how long the trend would last.

“There are many sellers in the market at this high price but the demand is low and the sale and [rate of] transactions are sluggish,” he said. “No buyers from rural or faraway places are in the market too”, he said.

The exchange rate of the US dollar usually falls as the gold price rises. The dollar has gradually dropped below the 1,000-Kyat level from the 1,005 mark early last month, and has stabilised at about 990 Kyats to the dollar. The latest exchange rate for the day was 988 Kyats and the Foreign Exchange Certificate (FEC) rate buying price was  985 Kyats. The selling prices are 991 against the US dollar and 995 against the FEC.

The daily 24-carat-gold price in the Burmese market is set by the Gold Traders Association, also on Shwebonthar Street. Shop owners do not need to visit the office of the association but they must abide the prices it sets.