Gold price will fluctuate during Chinese New Year

BANGKOK, 6 February 2010 (NNT) – Gold trading before the coming Chinese New Year was more active than last year after the price of gold hit its lowest level in three months, according to President of the Gold Traders Association (GTA), Jitti Tangsitpakdee

Mr Jitti said the record low drop in gold prices was caused by China’s measures discouraging lending for speculation with the US and EU following suit. The global gold price therefore decreased by 50 USD/ounce while the domestic price dropped by 550 THB/one-baht weight. Cheaper gold has prompted people to buy it for speculation rather than selling it, resulting in short supply, the president explained. He also speculated that the gold price would continue fluctuating.

Gold shops in Chinatown on Yaowarat Road in Bangkok have reportedly received pre-orders for gold since the precious metal is currently in short supply. The price of gold ornaments today has increased to 17,300 THB/one-baht weight and gold bullion 16,900 THB/one-baht weight, which is considered low.