Next year’s gold price expected major flux

BANGKOK, 21 December 2009 (NNT) – The President of the Gold Traders Association predicts next year’s gold price will undergo a major fluctuation due to speculations from hedge funds at the time the global economy is recovering. The price should stay in the 1,100-1,200 USD/ounce range in the first quarter of next year.

Mr Jitti Tangsitthibhakdi said the domestic gold price largely depended on the world market but constant strengthening of the Thai currency also factored in the price markdown. He expected the trade activity to be more dynamic next year as a result of occasional speculations and greater investment by farmers who are likely to earn higher incomes from farm prices and attracted to gold investment.

However, the gold trade activity at the end of this year will not be so active because of several holidays like Christmas and the New Year. Domestic gold shops are closing from 31 December 2009 – 1 January 2010.

Today’s bullion price purchased at 17,500 THB per baht weight and sold at 17,600 THB while gold ornament is bought at 17,252 THB and sold at 18,000 THB.