Gold On The Increase Whilst Oil Fluctuates

GOLD PRICE STILL ON THE INCREASE WHILE OIL PRICE CONTINUES ITS FLUCTUATION

After the recent rally in gold prices, it is now apparent that supply put out by resellers hardly accommodates the demand from buyers who still want their shares in the price rally, where gold ornaments now sell for 10,750 baht in the Thai market.

Over the past few months, the price of gold bars in the world market rapidly accelerated. The domestic selling price of gold bars now stands at 10,450 baht per baht, whereas gold ornaments now sell for 10,750 baht per one baht-weight. Compared with prices at the beginning of the year, a 25% increase has been seen.

In the meantime, the crude price in New York ended the week on Friday (Dec. 9th) at 59.39 US dollars a barrel. Despite the decline this price level is still considered high, consequently resulting in prices on the Singapore market having increased by 4 US dollars per barrel, a phenomenon which prompted retail oil prices in Thailand to rise by 40 satang per liter on Friday. Marketing values for retail oil have hit a low, and this may prompt Thai oil traders to increase their prices once more by 40 satang this week, if the prices in the Singapore market continues to adjust upwards today.

Source: Thai National News Bureau Public Relations Department - 12 December 2005