Raw gold from Burma continued to flow out to China only to reenter the country to cost more than global prices, according to Myanmar Gold Entrepreneurs Association.
YANGON(BullionStreet): Raw gold from Burma continued to flow out to China only to reenter the country to cost more than global prices, according to Myanmar Gold Entrepreneurs Association.
Association said global gold price fell by $30 last week but local prices didn't fall by 10,000 kyat but only by 5,000 kyat after the markets were flooded with Chinese gold.
Follwing the price hike, Burma's gold trade remained sluggish as the result of the inflated prices but gold is being traded illegally on the black market, analysts said.
They were selling raw gold to Chinese merchants in black markets and were paid in dollars but later converting their earnings into kyat.
Earlier in the month, gold was sold at around 783,700 kyat per tical (0.58 ounces) well below average global prices.
The Association said that curbing illegal gold trading would enhance the stability of the Burmese gold market. They believe that the price of gold will continue to increase in the country until the end of the year.