Traders are predicting gold prices to remain largely stagnant until the end of the year because of strong domestic demand and the low value of the US dollar.
“The gold price was about K755,000 a tical (0.576 ounces) from November 3-6 during the US election when the global gold price was down,” said Ma Zin Mi Mi Aung from Aung Thamadi gold shop.
“But it increased since then to about K770,000 a tical on November 19,” she said.
She added that people are buying gold because of the recent earthquake in Mandalay and because it is the Kahtain season, when people traditionally buy gold jewellery.
“And the earthquake reduced gold production at mines in Thabeikkyin, Kantaung and Kyitautpout in Mandalay Region. It will take several months for those mines to return to normal production, so we expect prices will not fall until early 2013,” she said.
Translated by Zar Zar Soe