People Urged Not To Speculate On Gold Prices

[george]

People urged not to speculate on gold prices

BANGKOK: -- People should not speculate in gold prices for now because they are rather very volatile, according to an industry executive.

Dr. Krisharat Hirunsiri, Deputy Secretary-General of the Gold Trading Association, said the gold prices are in the growth cycle at present due to three main factors.

Firstly, investors have turned to invest in gold instead of oil because they are afraid of inflationary pressure in the world market.

Secondly, the gold production capacity does not meet the global demand.

Finally, the gold prices have broken a key resistance, making it possible for the prices to continue to increase.

He said people, who are interested in investing in gold, are able to do it in the medium and long run. But they should opt to speculate on the gold prices in the short run because they are so volatile now.

He said the local gold prices might rise to 9,500 baht per 15.244 grams in the same direction of those in the world market, which have already climbed up to US$480-500 per ounce since many countries turned to hold gold as assets in lieu of main currencies such as the US dollar and euro.

--TNA 2005-09-20