CHIANG RAI – Gold prices in Thailand have dropped to the lowest level in five years and are likely to fall further but not more than 30 US dollars per ounce, according to the Gold Traders Association.
Gold Traders Association president and chairman of Jin Hua Heng gold trading company Mr Jitti Tangsitpakdee described the steady gold price slump by 450 baht per baht weight as unusual resulting from the Federal Reserves’ decision to cut interest rate.
The prices of gold on Wednesday are quoted at 17,900 baht per baht weight for buying and 18,000 baht per baht weight for selling. Gold ornaments are priced at 17,646.24 baht per baht weight for buying and 18,400 baht per baht weight for selling.
Because of the interest rate cut by the Federal Reserves, Mr Jitti said that China found it necessary to cut the prices of gold and gold ornaments in order to attract customers and to protect itself from the risk of loss in gold futures.
Mr Jitti predicted that the prices of gold might further fall which might lead to gold shortage because the present gold prices fluctuating between 1,080-1,090 US dollars per ounce are already below the 1,100 US dollars cost price.
Regarding speculation in gold futures, Mr Jitti said those with deep pockets could invest in gold futures but should immediately sell once there is a profit and then buy again.