The Ministry of Home Affairs’ Bureau of Special Investigation (BSI) will record gold prices twice a day to deter price manipulation, said U Myo Myint, chair of the Yangon Region Gold Entrepreneurs Association, refuting rumours that the bureau was investigating local gold businesses.
“Government departments including the township police station, township general administrators and BSI question us about the price of gold every day.
“This is the normal procedure,” said U Win Myint, general secretary of Yangon Region Gold Entrepreneurs Association.
After U Soe Thein, deputy governor of the Central Bank of Myanmar, raised concerns about the rising level of non-performing loans (NPLs) in the Myanmar banking sector in Parliament earlier this month, local demand for gold saw a spike as people hurried to buy gold to preserve the value of their wealth.
With the central bank having successfully allayed fears of runaway NPLs, that demand has since abated. “Now, people want to sell their gold back to the market and that is causing price volatility,” said U Win Myint.
The Yangon Gold Entrepreneur Association announced regulations to be followed by its members on September 4, including accepting only cash transactions in trading, avoiding futures trading, and avoiding any activity which may damage the image of the association.
The price of pure gold on Tuesday was around K1.2 million per tical (16.3 grammes), softening from K1.3 million last week.
Officials said gold prices may continue falling due to sliding demand and warned the public not to spread rumours that prices have become unstable.