Gold in short of supply due to depreciated priceAugust 18th, 2008 - 4:58 pm ICT by Amrit Rashmisrisethi
Gold investors are advised to wait and observe global gold prices over the next few days after Thai domestic gold prices and gold supplies decreased.
Chairman of the Gold Trader’s Association of Thailand, Mr. Chitti Tangsitthiphakdi (จิตติ ตั้งสิทธิ์ภักดี), said the association is currently unable to fully analyze its trade movement now due to the uncertain direction of the Gold Fund. He reasoned that if the fund decided to sell off stocks in its oil and gold segments, the price of global gold will recede and so will the price of Thai domestic gold.
Mr. Chitti said despite the reduction in price of domestic gold, precious commodities are in greater demand among investors and in short supply at the moment. According to market mechanism, when gold is in short supply, its price will increase. He said prior to the current situation, gold prices were decreasing.
According to the Gold Trader’s Association of Thailand, a gold ornament of 15.2 grams today (August 18th) was bidded at 12,567.64 baht and offered at 13,250 baht. At the same time, gold bars weighting 15.2 grams was bought at 12,750 baht and sold at 12,850 baht.
Source : National News Bureau, Public Relations Department of Thailand