Despite the price of gold falling from record highs this week, the number of buyers remains low, according to industry insiders.

The price of high-grade gold has gradually dropped from a record peak of over K2 million per tical to K1.7 million on October 27, but sales are reportedly still sluggish.

“Many people could not afford to buy gold even when prices plummeted due to the economic downturn. Before the Covid-19 epidemic, most people in rural areas bought gold,” said Ko Nyan Tun Aung, a gold and jewelry shop owner.

The price of gold stood at K1,730,000 per tical in the local market on October 26 and reportedly dropped to K1,710,000 the following day.

U Khin Maung Gyi, chairman of the Arakan Entrepreneurs Association, said he thought the price of gold had fallen due to declining demand.

“This could lead to a loss of public confidence in money and concerns about money. This includes the impact of economic uncertainty during this period,” he added.

A tical of 24K gold had risen to over K2 million in the domestic market in early October, even amid reports of more sellers than buyers.