ALTHOUGH local gold prices dropped by 200 baht today after the US Federal Reserve approved a 0.25 percentage point interest rate hike to 0.50-0.75% as expected by the market, a steep plunge is unlikely because they have already dropped substantially, Thai News Agency quoted Gold Traders Association president Jitti Tangsithpakdi as saying today.
Gold bars are being sold at 19,400 baht a baht weight today with the buying price being 19,300 baht. Gold ornament selling price is 19,900 baht a baht weight and buying price 18,950 baht.
Mr Jitti added that as the Thai baht has already weakened to 35.70 baht to the dollar it should not push gold prices down substantially but in the short term this could go down by 10-20 dollars an ounce.
However investors still have to keep an eye on the US Federal Reserve as to whether it will hike interest rates three times in 2017 as planned.
US President-elect Donald Trump’s policies also have to be watched, Mr Jitti said, because they could lead to a bigger outflow of investment funds with there also being a chance for the baht to weaken further.
The Gold Traders Association is closely monitoring factors affecting gold prices in 2017 and initially expects global gold price to be in the range of 1,100-1,350 dollars an ounce in 2017.
Gold Traders Association president Jitti Tangsithpakdi speaking to a reporter today. Photo: Thai News Agency