Gold Prices To Further Rise Due To Speculation

[george]

Gold prices to further rise due to speculation

BANGKOK: -- Gold prices in the domestic market are expected to further rise due to speculation by hedge funds, but they will not exceed Bt 10,000 per one baht in gold weight, according to the President of the Gold Traders Association, Mr. Chitti Tangsitpakdi.

Mr. Chitti said on Sunday that the current gold prices now stand at around Bt 9,200 per one baht in weight, slightly decline from their record high of Bt 9,250 recently and a sharp rise from Bt 7,650 earlier this year.

He said it was possible that the local gold prices could further go up, but they would not reach Bt 10,000 per one baht weight within this year.

Speculation by hedge funds, some of them had taken profits earlier from oil futures trading, had pushed the gold prices on the global market to rise unrealistically, said Mr. Chitti.

He said current gold prices were, however, not too expensive because the prices used to climbed to US$700 per ounce earlier when the global economy boomed and demand for gold was high at that time.

Now, world gold prices stand at around US$470 per ounce and there are chances

that the prices on overseas market would advance to US$500 per ounce, he said, adding that gold price should stay in volatility in the short-term and prospective buyers should be cautious--buy only a small amount--because the prices could fall in the future.

--TNA 2005-10-02

[kidtongue]

Gold prices to further rise due to speculation 

BANGKOK: -- Gold prices in the domestic market are expected to further rise due to speculation by hedge funds, but they will not exceed Bt 10,000 per one baht in gold weight, according to the President of the Gold Traders Association, Mr. Chitti Tangsitpakdi.

Mr. Chitti said on Sunday that the current gold prices now stand at around Bt 9,200 per one baht in weight, slightly decline from their record high of Bt 9,250 recently and a sharp rise from Bt 7,650 earlier this year.

He said it was possible that the local gold prices could further go up, but they would not reach Bt 10,000 per one baht weight within this year.

Speculation by hedge funds, some of them had taken profits earlier from oil futures trading, had pushed the gold prices on the global market to rise unrealistically, said Mr. Chitti.

He said current gold prices were, however, not too expensive because the prices used to climbed to US$700 per ounce earlier when the global economy boomed and demand for gold was high at that time.

Now, world gold prices stand at around US$470 per ounce and there are chances

that the prices on overseas market would advance to US$500 per ounce, he said, adding that gold price should stay in volatility in the short-term and prospective buyers should be cautious--buy only a small amount--because the prices could fall in the future.

--TNA 2005-10-02

<{POST_SNAPBACK}>

Seems like gold futures are up considerably. Maybe time to think about the exchange rate trade?