Local Sales Of Gold In Chinese New Year Drops By Over 60-70%

Local sales of gold in Chinese New Year drops by over 60-70%

BANGKOK: -- Local sales of gold in the Chinese New Year festival have dropped by more than 60-70 per cent from that of last year since gold prices have significantly increased, according to an industry executive.

Jitti Tansitthipakdi, President of the Gold Trade Association, conceded the local gold market had been rather sluggish in the past Chinese New Year festival because gold is very expensive.

He said total sales of gold in the period had slumped by around 60-70 per cent, much higher than 30-40 per cent expected earlier.

Should the gold prices continue to stay high and the market be further sluggish, he said, a large number of goldsmiths would risk losing their jobs.

Mr. Jitti project gold prices in the world market would continue to increase. It is likely the global gold prices would rise to US$600 per ounce next week.

Under the circumstance, a local price of gold is expected to edge up accordingly and touch 11,000 baht per one-baht weight next week.

He conceded the surge in the gold prices now was not controlled by market. It stemmed from a pure speculation.

--TNA 2006-02-03