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

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

MOST VIEWED

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • Quarantine still a must for all arrivals, in next Covid chapter

    Since early May, an average of five to 10 Cambodian people have died from Covid-19 a day with many others testing positive amid the ongoing community outbreak. At the same time, however, hundreds of patients also recovered a day. The first Covid-19 case in Cambodia was

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • First commercial gold mine online

    Australian miner Renaissance Minerals (Cambodia) Ltd on June 21 began the commercial operation of its $120 million Okvau Gold Project in the northeastern province of Mondulkiri, becoming the Kingdom’s first gold producer. Located in the Okvau area in southwestern Mondulkiri province’s Keo Seima district, the

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth