Gold may soar higher at yearend
INVESTORS will likely benefit from gold again soaring at yearend to touch $1,400 an ounce, or approximately 23,300 baht a baht weight, because it has already passed its lowest point, MTS Gold CEO Kritcharat Hirunyasiri told Thai News Agency today.
As of 2 p.m. today the selling price of 96.5% gold bars was 22,000 baht a baht weight while purchase price was 21,900 baht. Meanwhile the selling price of gold ornaments was 22,500 baht and purchase price 21,512.04 baht.
Dr Kritcharat added that the Thai gold market has been very lively this month after prices climbed from 21,700 baht a baht weight to 22,500 baht with sellers rushing to lock in their profit.
In this country short-term investors total as much as 80% of the market with the remainder 20% being those in for a longer than minimum six-month stretch.
In June Thai gold shops exported 70% more gold compared to the same month last year with this mainly being gold bars and chiefly going to Switzerland and Singapore.
Key developments to follow include Federal Reserve meetings with the markets anticipating it would not hike interest rates this year. The next two Federal Open Market Committee meetings are slated for July 26-27, 2016 and September 20-21, 2016.
Aside from this Bank of England and European Central Bank meetings have to be watched as they are expected to inject liquidity to spur economic growth.
Meanwhile CNBC quoted Mark To, head of research at Hong Kong’s Wing Fung Financial Group as saying that gold prices are feeling some kind of pressure because of the increasing easing of risk aversion.
“”People have formed expectations that central banks worldwide have to include more stimulus packages in their monetary policies, leading to risk asset appreciation,” he said
Even so, Kitco News quoted longtime investor Doug Casey as saying on the sidelines of Freedom Fest in Las Vegas last week that he expects eventful, yet somewhat frightening, years ahead for markets and the US economy.
“We’re on the cusp of the greater depression. I believe that this year, before this year is over, we’re going to enter the trailing edge of the storm, which is going to be really chaotic and much more different than what we had in 08-09.
“What will happen? One of the characteristics of it is that there is going to be a panic into gold.” he said.
TOP: Glittering gold coins which investors long to acquire. Photo: Anthony Joh
INSET: A woman wearing heavy gold bangles worth a tidy sum of money. Photo: Gopal Vijayaraghavan
By Nanthida Kumari