Thailand gold futures traders advised to sell

BANGKOK, December 14 (TNA) – Thailand’s Gold Traders Association chairman Jitti Tangsithpakdi has advised gold speculators to sell in order to reduce risks as gold prices in the world market have declined to a new low at 1,130 U.S. dollars an ounce. Mr. Jitti said at a seminar that there are signs that gold prices next year would continue to fall and are expected to move between 1,100 – 1,300 U.S. dollars per ounce after hitting a new low of 1,130 U.S. dollars an ounce earlier in 2014. Investors have switched investment to American dollar on high expectations that the U.S. would increase its interest rates along with forex exchange volatility, he said. If gold prices in the world market drop to 1,100 U.S. dollars an ounce, gold prices in Thailand could decline to between 17,000 – 17,500 baht per baht-weight, said Mr. Jitti. However, this also depends on the strength of the Thai currency, the baht, because a change of every one baht could affect gold prices as much as 700 baht, and global plus Thailand’s economic recovery. Hopes on seeing gold prices in Thailand to move at between 20,000 – 21,000 baht per baht-weight in 2015 or even the next five years are very slim, he said, adding that gold prices during the first half of 2015 are expected to move sluggishly. As gold prices have declined, Mr. Jitti said he is also worried that more gold mines are expected to shut down after approximately 40 per cent of them have already closed down businesses on a sharp fall of gold prices. Less gold would enter the market then and this would help gold prices to rise but only in short-term, he said. (TNA)