Gold price plunges as Turkish lira crisis rages on
THAI gold traders expect the price of the precious metal to slide to 18,300 to 18,400 baht a baht weight with investors selling heavily because the Turkish lira crisis has strengthened the US dollar while those interested in buying the dip are delaying doing for now, Thai News Agency reported this afternoon (August 16, 2018).
Miss Thipa Nawawattanasub, CEO of YLG Bullion and Futures Company, said gold price dropped to the lowest point in 2 years and 8 months today reaching 18,550 baht a baht weight.
She added that the precious metal could drop further in the short term and possibly reach 18,300 baht a baht weight or US$1,150 an ounce.
Investors and gold funds, spooked by US-China trade war, Turkish lira crisis and its tariff spat with US, have been steadily selling the precious metal for 2 months now, she said.
The Turkish lira has depreciated by 45% since the start of this year with this triggering a pressure to dump risky assets, such as stocks, as well as gold to invest in US dollar instead, with the US dollar index reaching its highest point in 13 months.
Meanwhile Mr Tanarat Pasawongse. managing director Hua Seng Heng Gold Futures Company, said gold is still on the leg down because of worries that the Turkish lira crisis might spread to Europe as European banks have a big exposure to that country.
He sees that in the short term the gold price resistance is at US$1,170 to 1,150 an ounce or around 18,400 baht a baht weight with investors holding back until the Turkey situation clarifies.
Top: Gold ornaments for sale at a gold shop in Bangkok. Photo: Thai News Agency