Gold surges to new record high

Gold surges to new record high

Gold prices reached new heights on Monday, soaring above 27,150 baht for gold ornaments, with the retail price being increased at least seven times during the day.

At 2.48pm today, the Gold Traders Association announced the buying price at 26,257.12 baht per baht-weight for gold ornaments and 26,650 baht per baht-weight for gold bar.

The selling prices were set at 27,150 baht per baht-weight for gold ornaments, and 26,750 baht per baht-weight for gold bar.

Gold Traders Association president Jitti Tangsithpakdi said people rushed to gold shops along Yaowarat Road. There were more buyers than sellers and some shops ran short of gold bars.

"Some gold shops had to give out booking tickets so their customers can make the purchase next week.

"This is not normal because gold prices are high but people continue to buy gold and not many are selling it," Mr Jitti said.

He said investors turned to the gold market instead of the stock market because they were concerned about the wavering global economy. The Stock Exchange of Thailand index fell 16.14 points, or 1.51 per cent, to stand at 1,053.06 points on Monday afternoon.
"There is a chance that the global gold price could reach US$2,000 per ounce by the end of this year, as foreign analysts predicted, due to the declining world economy. Many investors and funds have begun to speculate on gold, causing the prices to hit $1,869 per ounce," he said.

If gold prices reached $2,000 an ounce, gold prices in Thailand  should be around 29,000 baht, on the assumption that the baht will stay at 29.89 baht per dollar, he said.

He said small gold traders would be the first to get hurt if gold prices went down without warning.

"People should be cautious about gold speculation as there can be a lot of fluctuation in gold prices. When there's a possibility that gold prices will soar, there's also a possibility that they will fall quickly," Mr Jitti said.

He also warned gold shops not to raised gold prices above the announced prices, as it is illegal.

People who see a shop over-pricing gold can complain  to the Office of the Consumer Protection Board or the Gold Traders Association