Search form

Login - Register | FOLLOW US ON

Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia sees gold price dip

Cambodia sees gold price dip

Gold prices in Cambodia are down about 27 per cent from January through June, according to the Ministry of Commerce.

Supply is stable and demand is gradually increasing, but prices fell on the heels of global market declines.

Figures from the ministry show that the price dropped from about $1,995 per damlung in January to $1,560 yesterday. One damlung is equal to 1.2 ounces, and 26.67 damlung are equal to 1 kilogram gram of gold.

Sieng Lim, a staffer at Ly Hour Money gold shop, a major seller in Phnom Penh, said yesterday that demand and gold trading in Phnom Penh is gradually increasing. She added that most Cambodians buy gold for personal use, to produce bracelets or earrings, while a minority stock up on it to resell.

“The current price is decreasing noticeably, with the lowest rate ever during the past three years,” Lim said. “There is nothing to worry about on the demand or supply side in the local market, but the price drop has to do with the international market.”

Chan Sophal, an independent economic analyst, said that as the global economy is recovers, people place more trust in the reliability of currencies, instead of hedging by hoarding gold.

“Price of gold has jumped significantly after the post-financial crisis because people think that the US currency has fluctuated quickly,” Sophal said. “Now, they think it is stable … which eventually makes the price decline.”

Gold trade changed little yesterday after the biggest drop in almost two weeks in response to the US Federal Reserve Chairman Ben S Bernanke’s comments on the central bank’s asset purchases. Spot gold traded at $1,276.54 an ounce by 9:28am in Singapore from $1,276.11 on Wednesday, when prices retreated 1.3 per cent, the most since July 5.

ADDITIONAL REPORTING BY BLOOMBERG

0

Comments

Please, login or register to post a comment

Latest Video

Bodies of Cambodian peacekeepers returned to Kingdom

The bodies of four Cambodian peacekeepers killed by a Christian militia in Central African Republic were repatriated to the Kingdom and honoured in an airport ceremony on May 21.

Phnom Penh eats: Ptas Nak Battambang

As the name suggests, Ptsa Nak Battambang – which in English means Battambang's house – is the right place for those who want to try some of the province's typical dishes in Phnom Penh.

Defence Minister Tea Banh yesterday said the popular appeal of the Cambodia National Rescue Party’s pledge to substantially boost commune budgets p

Opposition surrogate Kong Korm speaks to supporters at a campaign event on Monday in Prey Veng province in front a CNRP banner bearing the face of ex-party leader Sam Rainsy. Facebook

The National Election Committee has rejected an opposition campaign advertisement from airing on a state-owned television station because it featur