Gold May Hit Bt14,000 Baht-weight By Year-end

[george]

Gold may hit Bt14,000 baht-weight by year-end

BANGKOK: -- The global price of gold is highly volatile due to profit-taking by hedge funds, while the price on the domestic market could hit Bt14,000 per 15.16 grams (Thai baht weight) by the end of 2006, according to President of the Gold Trading Association Jitti Tangsitpakdi.

Mr. Jitti said on Saturday that profit-taking by hedge funds, rather than tension in the Middle East, had pushed the global gold price up to some US$650 per ounce currently and it may continue rising to US$700 an ounce within the coming three months and to US$800 by year-end.

Likewise, the domestic gold price is unpredictable and, according to Mr. Jitti, gold is now locally priced at Bt12,000 per 15.16 grams and able to rise to Bt14,000 if the world price climbs to US$800 per ounce, depending on the strength of the Thai baht, he said.

At present more people are selling gold due to its attractive price, but speculation on gold still contains a high risk, Mr. Jitti cautioned.

--TNA 2006-07-15

[Jai Dee]

Gold, a port in a storm

The price of gold hit a two-month high in Asia yesterday at US$676.45 (Bt25,866), a level not seen since May 19, as investors continued to seek refuge from the Israeli-Lebanese conflict and near-record oil prices. Retail gold prices on the Thai market also rose again yesterday.

Source: The Nation - 18 July 2006