Domestic gold prices are falling due to COVID-19 opening up

Changes in the domestic gold market depend on the spread of COVID-19. (Photo: Nicky)

Despite the bank’s interest rate cut, some gold traders say the domestic gold market has dropped below international prices due to the COVID-19 epidemic.

While the global gold market opened at more than US $ 1,700, the domestic gold price opened at around 1,180,000. According to U Myint Myint, chairman of the Rangoon Gold Entrepreneurs Association, prices are set to be higher than the current 100,000 kyat.

The Gold Market, which was opened at the Rangoon’s Gold Enterprise Association’s office just below the block of Shwebantha Road, was closed until May 15 due to the diseaseIDID-19. In addition, only some gold shops are open and most are closed.

“If the market reopens, the gold price could go up to over 20,000,000,” Myo Myint estimates.

One gold shop owner said he expects gold investment to rise following the reopening of the market and that interest rates will rise.

When COVID-19 arrived in Burma, the central bank cut the bank’s interest rate to 3%. The interest rate on the deposit is 8% to 5%; Mortgage interest rates were reduced from 13 percent to 10 percent.

Some gold traders say the change in the domestic gold market depends on the spread of COVID-19. The current fall in domestic gold prices is also related to a decline in the export of gold to India. India has closed border trade because of COVID-19.