Local gold prices likely to surpass 10,000 bt early next year

BANGKOK: -- Local gold prices are very likely to surpass 10,000 baht per one baht (15.16 gram) early next year since hedge funds have shifted their speculation from the forward market of oil to the gold market, according to an industry executive.

Jitti Tangsithipakdi, President of the Gold Trade Association, said the speculation shift had edge up gold prices uninterruptedly close to US$500 per ounce at present.

It resulted in local gold prices increasing 100-200 baht per day on average to 9,850 baht per one baht at current. It is very likely the prices would rise above 10,000 baht early next year.

He said the continued rise in the gold prices had lessened people’s purchasing power of the product on the eve of the New Year festival in which gold trading is active every year.

He projected the sale of gold in the New Year celebration period would drop by 20 per cent due to the upward gold price adjustment.

--TNA 2005-11-28

GOLD TRADERS ASSOCIATION EXPECT GOLD PRICE TO REACH 10,000 BAHT EARLY NEXT YEAR

The Gold Traders Association of Thailand predicts that the gold price may reach 10,000 baht early next year.

Gold Traders Association President JITTI TANGSITPHAKDEE (จิตติ ตั้งสิทธิ์ภักดี) said multinational funds have shifted from speculating in the oil market to speculating in the gold market. Thus the oil price over the recent period had continually risen. At present the price is nearing 500 USD per ounce, resulting in the gold price in Thailand having risen by 100-200 baht per day. At present the domestic gold price stands at 9,850 baht per baht, and Mr. JITTI said there is high probability this would go up to 10,000 baht per baht early next year.

The rise in gold prices has resulted in decreased gold purchasing power by people during the time when New Year's, a period of gold-buying for presents, is closing in. This factor is expected to result in a 20% decline in gold sales during the New Year's.

Source: Thai National News Bureau Public Relations Department - 28 November 2005