Expert: Gold prices fluctuate due to better-than-expected US economy

BANGKOK, 9 January 2011 (NNT) – A gold expert has said the fluctuation of the prices of gold at the moment has been caused by the US’ better-than-expected economy, which consequently strengthens the US dollar, causing global gold price to drop.

According to Gold Traders Association President Jitti Tangsithpakdi, global gold price has decreased in the face of the increasingly stronger greenback. The price of Gold in Thailand has gone down by 400 baht, down to 19,750 baht from the new high of 20,150 baht one-baht (15.2 grams) weight.

He has also urged speculators to be extra careful when investing in the gold market, as the prices could fluctuate throughout the year. Mr Jitti does not believe that the price would go over 1,500 US dollars per ounce. He has, however, cautioned that the adjustment could go both ways; unlike last year which saw the price of gold steadily increasing.

, Meanwhile, the YLG Bullion and Futures Company Limited has advised that investors invest cautiously due to price fluctuation. The current global gold price is 1,325 US dollars per troy ounce.

The US economy, which has been improving since the beginning of the year, has shifted investors’ interests from investing in gold.