Gold prices expected to peak near US$ 1,600 by year end

BANGKOK, 21 March 2011 (NNT) – Gold prices are expected to hit a record high once again following the western allies’ military operation in Libya plus the aftermath of twin disasters in Japan, according to YLG Bullion and Futures.

YLG Bullion and Futures CEO Tipa Nawawattanasup stated that the military operation of the allied forces belonging to the US, the UK and France against the Libyan troops loyal to Colonel Muammar Abu Minyar al-Gaddafi will certainly affect trade and investment in both gold and oil markets.

Ms Tipa expected that the gold price would reach a new peak of 1,450 US dollars per troy ounce after it reached a record high of 1,445 US dollars an ounce last week because investors were worrying with the situation in Libya.

Meanwhile, the situation in Yemen, Bahrain and Saudi Arabia also tends to escalate with demonstrations and riots. Ms Tipa said gold prices might rise further as a safe asset although it plunged earlier after the twin disasters in Japan. YLG Bullion and Futures forecasted at that time that the plunge would be only short-term.

As for the mid- and long-terms, Ms Tipa believed that the Japanese disasters would trigger concerns for a global economic slowdown, which would then cause gold prices to shoot up.

The CEO estimated that the gold price would rocket to as high as 1,600 US dollars per troy ounce by the end of this year, the rate which is faster than all projections. As for the domestic gold price, she said it would go up to the range of 22,000-23,000 baht per baht weight.