Higher gold prices projected next year
Gold prices are likely to be on the rise next year due to a speculation by hedge funds and a volatility of the global economy and currency exchange rates...
Gold prices are likely to be on the rise next year due to a speculation by hedge funds and a volatility of the global economy and currency exchange rates, according to an industry executive.
Chitti Tangsithipakdi, President of the Gold Trading Association, said here on Tuesday that gold prices on the world market stay in a narrow range at around US$495 per ounce on the New Year eve since most markets overseas are closed.
However, he forecast the global gold prices would fluctuate again next year since hedge funds would turn to speculate on gold prices, instead of oil prices, and world economic conditions and currency exchange rates would be volatile.
He said it is very likely that the gold prices would increase to US$540 per ounce next year, the highest in 25 years.
This would result in local gold prices edging up to the record high of 10,550 baht per baht-weight.
“Next year, gold prices will be on the rise and remain high volatile on a speculation by hedge funds. So, speculators must be cautious because prices may rise or decline by several hundred baht each day,” he noted.
Mr. Chitti said a gold trading atmosphere on the domestic market on New Year eve appeared not to be active as it should be because the gold prices had increased so high that some entrepreneurs are unable to buy gold as New Year gifts to regular customers.
This could be witnessed by a drop by more than 40 per cent in the sale of gold ornaments. (TNA) – E005