Gold Market Likely To Be Sluggish Over New Year

[george]

Gold market likely to be sluggish over New Year

BANGKOK: -- Gold traders are predicting a sluggish market over the New Year festival with buyers deterred by high prices.

Chitti Tangsithipakdi, president of the Gold Trading Association, said gold prices were likely to move in a narrow range over the New Year, and not fluctuate as much as in past festival times.

It was expected that the retail price of gold would move within a range of about 100 baht.

At present, he said, a traditional gold bar was bought for 8,400 baht and sold for 8,500 baht. Gold ornaments sold for around 8,700 baht, and were bought for about 8,320 baht.

He said gold prices in the world market had also moved in a narrow range

because most gold traders slowed their activities on the eve of the Christmas and New Year festivals.

However, Mr. Chitti said, global gold prices were likely to rise to about US$480 an ounce in the first quarter of next year from the current figure of around US$450 because of the weakening US dollar.

“Gold traders had to pay special attention to currency rates next year as the strengthening of the baht has an influence on the gold price movement.

“Should the baht stay at around 40 to the dollar, the one-baht weight of

gold ornaments will be around 8,800 baht. But if it strengthens to 39 to

the dollar, gold prices would drop to around 8,500 baht,” he said.

--TNA 2004-12-07