Gold prices.

[Admin]

Gold hits record high, USD falls to 33.4 baht 
Bangkok Post: 7 Oct 2009
www.bangkokpost.com/breakingnews/156320/gold-hits-record-high-dollar-falls

Gold hits record high, dollar falls

London - The price of gold struck an all-time high of $1,043.78 early on Wednesday as the dollar fell to 33.4 baht on reports of a plan by Gulf states to stop using the greenback for oil trading.

Gold hit 1,045.00 dollars per ounce on the New York Mercantile Exchange in late trades.

Hours earlier on the London Bullion Market, gold surged to beat the previous record high of $1,032.70 an ounce struck in March, 2008.

Barclays Capital precious metals analyst Suki Cooper said dollar weakness appeared to be related to reported secret talks about oil being priced in a basket of currencies including gold rather than the dollar,

This "has added to concerns about the future role of the dollar in international financial markets," Cooper said.

The dollar's future as the world's top currency was thrown into doubt on Tuesday as a report said Arab states had launched secret moves with China and Russia to stop using the greenback for oil trading.

Arab states have launched steps with China, Russia, Japan and France to stop using the dollar for oil trades, British daily The Independent reported on Tuesday, but the report was denied by Kuwait and Qatar and reportedly by other nations.

The Independent's Middle East correspondent Robert Fisk wrote in his paper: "In the most profound financial change in recent Middle East history, Gulf Arabs are planning -- along with China, Russia, Japan and France -- to end dollar dealings for oil."

They would instead switch "to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council (GCC), including Saudi Arabia, Abu Dhabi, Kuwait and Qatar," added Fisk.

Gold, viewed as a safe-haven investment, has won back favour in recent months as the global economy struggles out of its worst slump in decades.

The run-up in gold has been largely driven by weakness in the dollar, which makes dollar-priced commodities cheaper for holders of stronger currencies, boosting demand.

Gold also wins support from fears about higher inflation because the metal is widely regarded by investors as a safe store of value.

Precious metals consultancy GFMS last month warned that the current upward trend in gold may not be sustainable should global stimulus packages fail to boost flagging demand in the battered world economy and inflation fall as a result.

The Group of 20 leaders of emerging and developed nations recently agreed at a summit in Pittsburgh not to roll back massive stimulus measures that helped contain a severe global recession. (AFP)

[Admin]

Price of Gold hits record high 
Bangkok Post: 5 Nov 2009
www.bangkokpost.com/breakingnews/159117/gold-price-hits-record

Gold price hits record

AFP

The price of gold surged to a record peak of 1,095.80 dollars an ounce in trading here on Wednesday in the wake of the International Monetary Fund's massive sale of the precious metal to India.

Gold had already reached a record high of 1,087.80 dollars on Tuesday as the IMF said it had sold 200 tonnes of gold to India's central bank over a two-week period last month for 6.7 billion dollars to bolster its finances.

"Gold prices continue to march further into uncharted territory following the IMF's gold sale to the Reserve Bank of India,'' said Barclays Capital analyst Suki Cooper.

After spiking to a new high at 1545 GMT on Wednesday, gold later pulled back to 1,090 dollars in London.

"Gold is still benefiting from news that, at the end of October, India bought 200 tonnes of gold from the IMF at market prices,'' said Commerzbank analysts.

"This transaction is an indication that, despite the prevailing high price level, central banks from emerging economies are still willing to accumulate gold to diversify their currency reserves,'' they added in a note to clients.

Gold and other commodity prices have surged in recent months amid a move away from the dollar, which has been slumping. The move accelerated last month on a report that Gulf states may stop using the greenback for oil trading.

The metal is also winning support from fears over a possible spike in inflation, as gold is widely regarded by investors as a safe store of value.

Bart Melek at BMO Capital Markets said the big sale of gold to India gives credence to the theory "that there are official buyers waiting in the wings for large amounts of available gold.

"The question now is, who buys the rest of the IMF gold?'' said Melek.

"We suspect it may be China, other Asian countries, Russia or even India again, as they hold relatively little gold relative to their very large foreign exchange reserves, and may want to diversify away from US dollars.''

The sale to India was nearly half the 403.3 tonnes of gold that the IMF has targeted for sale over the coming years.

The Washington-based IMF, which currently holds 3,217 tonnes of gold, is the third-largest official holder of the precious metal after the United States and Germany.

India is the world's biggest consumer of gold, importing between 700 and 800 tonnes of the metal every year or 20 percent of global demand.

[Admin]

Gold rush on in Phichit Thailand 
Bangkok Post: 13 Nov 2009
Gold rush in Phichit

Thousands of people are flocking to the Phanompa mountain range in Phichit to dig for gold.
 
The gold rush in Wan Sai Phun district has been triggered by runaway gold prices which are touching 18,000 baht for a one-baht weight of gold (15.16 grammes).

Many people from nearby areas have flocked to the Phanompa mountain range, with a good number of them walking away with between 500 and 1,000 baht worth of gold a day, a source said.

In Nakhon Ratchasima, police have stepped up patrols at gold shops in light of the soaring gold prices.

www.bangkokpost.com/news/local/27327/gold-rush-in-phichit

You better hurry up ... 

[isanbirder]

Gold's been known in them there mountains for aeons... and nobody's ever made a fortune out of it.  Take off a couple of zeros from each figure, and the story might be true.

[Admin]

Gold prices to rise in 2010: Thai traders  
Bangkok Post: 3 Jan 2010
Gold prices to rise in 2010

* Published: 3/01/2010 at 11:40 AM

Gold prices are expected to rise this year, according to Gold Traders Association president Jitti Tangsithpakdi's forecast.

The gold market in 2010 should be lively after gold prices rose continually and surged to a new high last year, he said.

"However, the gold market is not expected to be very lively yet as gold traders are still celebrating during the New Year's holiday," Mr Jitti said.

Local gold shops on Bangkok's Yaowarat Road were quiet as many people returned home during the long holiday.

Mr Jitti said gold prices in Hong Kong and New York markets will have to be closely monitored this Monday.

www.bangkokpost.com/breakingnews/164297/gold-prices-to-rise-in-2010
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Vietnam orders gold-trading floors shut by end-March

Vietnam, where many people see gold as a safe haven against economic uncertainty, has ordered public gold-trading floors shut by March 31 because they rest on a "fragile foundation".

Vietnam, where many people see gold as a safe haven against economic uncertainty, has ordered public gold-trading floors shut by March 31 because they rest on a "fragile foundation". The order affects about 20 gold-trading houses operated by banks and other firms, which have been running for more than two years, the state-run Vietnam News reported.

The order affects about 20 gold-trading houses operated by banks and other firms, which have been running for more than two years, the state-run Vietnam News reported.

Retailing of gold jewellery will still be allowed, it said.

The gold-trading floors have offered heavily-leveraged trading in which investors pay a security deposit of only seven percent of the net asset value of their trades while banks back the rest, the report said.

"It's very risky for traders involved in such highly leveraged operations," a Hanoi-based investment analyst, Bui Kien Thanh, told Dow Jones Newswires.

The government will need to reorganise the gold-trading floors as part of efforts to stabilise domestic financial and money markets, Thanh said.

A government statement said transactions at the gold-trading firms total up to thousands of billions of dong a day (hundreds of millions of dollars) but occur "on a fragile foundation that lacks legal, economic and technical frameworks and knowledge."

In an early-December report the World Bank said Vietnam experienced a severe shortage of foreign exchange between May and July, and again in November.

"Uncertainty regarding the level of international reserves also encouraged a precautionary demand for gold and dollars," putting significant depreciation pressures on the exchange rate, it said.

After burning through its official dollar reserves, Vietnam in November devalued the dong in a bid to bolster trade, which has suffered during the global financial crisis.

The World Bank has said Vietnam was the world's biggest importer of gold in 2008, when the country's inflation reached 23 percent for the year.

On Thursday the government reported a yearly trade deficit of 12.2 billion dollars, down 32.1 percent year-on-year but still too high, an analyst said.
  

[Admin]

Thai gold still glistens but may dull later 
Bangkok Post: 24 Jan 2010
Gold still glisters but may dull later

The introduction of gold futures on the Thailand Futures Exchange last year brought new opportunities, but there is a need for a better framework to support the trade

While there is a great opportunity to make good profits on gold in the first half of this year, with prices forecast to rise to between $1,300 (42,822 baht) and $1,350 an ounce, there are still problems to be ironed out in the relatively new gold futures market in Thailand.

MARGIN TOO LOW: Tipa Nawawattanasub says investors in gold futures should be required to put up at least 10% of the contract’s monetary value.

One sticking point is the very low initial and maintenance margin that investors must pay, at only 6% of a contract's monetary value, said Tipa Nawawattanasub, CEO of YLG Bullion and Futures Co Ltd.

Gold is expected to smash last year's high of $1,224 an ounce in the first half of this year, but will likely fall in the third and fourth quarters when it is foreseen that the US Federal Reserve will increase interest rates.

"Whenever the Fed raises the interest rates, the gold price dips. However, if you look at the overall factors of the global economy, it should take at least two years to recover," said Ms Tipa.

"It will not suddenly bounce back in one year or one quarter, so I think this is a golden year for gold prices."

However, she is concerned about the 6% initial and maintenance margin for gold futures on the Thailand Futures Exchange (TFEX).

Brokers in the year-old market have found that some clients refuse to top up their accounts and simply close their contracts when the price falls, not accepting the loss. This results in the brokers themselves having to meet the loss and then suing the client.

Ms Tipa offered an example: Suppose the spot gold price drops by $100, from $1,200 to $1,100 an ounce, on the 50 baht weight (760g or 24.435 troy ounces) current minimum contract allowed. This means a big loss the very next day. The loss could be minimised if the TFEX were to introduce mini contracts for 10 baht weight (151.6g) but this has been shelved amid opposition from gold shops that are already losing customers to the TFEX.

Ms Tipa urged the authorities to increase the margin to 10% because gold prices fluctuate a lot and a fall of 10% a day can be considered quite normal.

"The gold price tracks the New York market. In our country we trade from 10am to 5pm, but the price fluctuates after we have shut shop.

"Sometimes the price doesn't move the whole day, and in Asia in any case it only moves three days a week because it follows the American market."

Another glaring problem in the new gold futures market is the lack of pooling and sharing of information regarding clients among the brokers.

"Supposing I have a bank statement of 200,000 baht and I show it to five gold brokers. All five would allow me to invest this amount of money in gold and this would add up to one million baht. But actually I only have 200,000 baht, so it's risky for the brokers. For this reason there should be sharing of information."

Ms Tipa also urged the Securities Exchange Commission (SEC) and the TFEX to assist brokers in educating clients about this novel investment class.

YLG has already taken the lead on this, holding free seminars for small groups of five to 10 potential investors every Monday, Wednesday and Friday.

Investment in both gold futures and real gold bullion is covered. Investors can make a profit by trading in the two different types of gold holdings because the price sometimes differs.

Concerning the recent uproar about the introduction of mini gold futures contracts of 10 baht weight, Ms Tipa said one could look at the issue from two perspectives.

Where gold futures traders are concerned, the mini contract would help draw new investors in. and once they have started making a profit they would normally move to bigger contracts because the margin is low.

On the other hand, the situation for those running gold shops should be considered. This is a traditional Thai occupation, with some shops having been in the family for three or four generations of.

While they can also sell gold futures contracts it may not be so easy for them to do so. It is the older generation who operate these shops and it is often difficult for them to handle online trading.

"If an investor wants to put some money in gold futures, he might prefer to invest through a broker rather than go through a gold shop. He might feel that a broker would give him better advice," Ms Tipa added.

Some gold shopkeepers also hold the opinion that gold futures are a good tool if used as hedging instrument to prevent risk, but because 90% of the market revolves around speculating on the price it could be seen as gambling, and thus corrupting.

At any rate, putting restrictions on the gold futures market would only drive Thai investors to other regional markets, with India being the biggest in Asia followed by Japan.

There is also no denying the surge of gold futures on the TFEX, with daily contracts increasing from around 2,000 when trade started in February, 2009, to around 3,600 in the fourth quarter of last year.

YLG's database shows that the majority of investors are in the 35 to 50 age group, but there has also been interest in this new market from older people and also students and new graduates.

Ms Tipa foresees the introduction of gold-backed ETFs (exchange traded funds) in Thailand in the years to come. ETFs are basically funds that invest 90% of their cash in gold and allow investors to buy units.

Thailand does not have a silver futures market, but other Asian countries such as Japan do. Overseas investors know that silver often yields better profits than gold and the investment is lower.

Ms Tipa remarked that within Thailand there is no tradition to trade in silver because in the past its low value meant investors would have to cart around 300 to 500kg of the metal to carry out a transaction, which is a big hassle and poses a big security risk.

But even though prices have risen considerably, any possibility of introducing silver futures contracts here would stumble upon the 15% VAT that is imposed on imports of this metal but entirely waived for imports of gold.

http://www.bangkokpost.com/news/investigation/31672/gold-still-glittering-but-may-dull-later

[Admin]

BTW, can find Thai Gold prices, update online every day !! here: http://www.buriramexpats.com/thai-gold/

So the next time you rush to buy gold..  check prices first. 

[Admin]

Gold hits record high 
The Nation: 9 Jun 2010
Gold price hits record high above US$1,250 an ounce
By Agencies, The Nation
Published on June 9, 2010

Gold hit a record $1,251.85 an ounce in the London Bullion Market yesterday morning and could reach $2,000 this year, with investors nervous about the weak state of the global economy seeking safety in the precious metal.

The domestic gold price increased by Bt400 per baht weight yesterday.

"We are seeing continued signs of stress in the financial markets, and investors - novice to expert - are looking at gold now as a hedge against further turmoil," said Rajesh Patel, head trader at financial-betting firm Spread.

The metal is expected to trade between $1,050 and $1,300 an ounce for the rest of this year and may climb to as much as $2,000 should the sovereign-debt crisis spread beyond Europe, possibly to the US, Spread CEO Paul Walker said in an interview.

Gold may even surpass platinum prices, he said.

Globlex Holding Management expects the price of gold to continue rising this week now that the European debt problem is spreading to Hungary.

"With gold now considered a safe-haven asset, investors have opted to shift their money from risk assets to safe-haven assets like bonds and gold," said assistant director Nutthapol Kamthakrua.

Nutthapol said this phenomenon would last for a while, until there was truly some sign of a rebound in European stock markets and the euro. Looking at the correlation between the US Dollar Index and the gold price, the latter is rising more slowly than the former.

He said this was likely due to gold garnering more interest for short-term investment than US bonds. If gold climbs above US$1,220 (Bt39,700) per ounce, its upside price will be in the range of $1,240 to $1,250 an ounce.

Nutthapol said Goblex forecast the gold price would move within the range of $1,200 to $1,240 an ounce, or Bt18,500 to Bt19,150 per baht weight.
 

[Admin]

Thai gold imports up but who's buying? 
: 14 Sep 2010
Thailand: who’s buying gold?

by Tim Johnston
Financial Times


Gold demand is volatile, especially in Asia, but what on earth is happening in Thailand?

According to some numbers buried in the Thai customs website, gold imports in July, the latest month for which data is available, hit Bt55.4bn ($1.8bn), which is equivalent to a bit less than 45 tonnes and more than 13 times June imports of Bt4.1bn ($130m).

There are a few possible explanations. Thailand is a global jewellery hub - the world’s biggest cutting centre for coloured stones - but jewellery demand was significantly down in June and July.

Previous months had seen significant exports, but restocking doesn’t seem to account for the rise either. Nor does leakage into Vietnam, whose demand for the glittery stuff is immense but fairly constant.

So the numbers have got tongues wagging in Bangkok - and one player keeps being mentioned: the central bank, the Bank of Thailand.

The Thai baht is running at 13-year highs, up 8.4 per cent against dollar so far this year, which is not only worrying for exporters, but also for the Bank, which holds $157bn in foreign reserves.

The BoT won’t say how much of that is held in dollars, but a straw poll of Bangkok economists suggests that it is somewhere between 60 and 85 per cent, and they’ve already said they are trending away from the US dollar.

But if that 60-85 per cent estimate is right, every 1 per cent of appreciation in the baht is costing between $940m and $1.33bn in reserve losses on dollar holdings alone. At the top end, that’s close to 0.5 per cent of GDP, or a little more than 2 per cent of the 2010/11 budget passed last month.

So has the BoT been in the market? They aren’t saying, but the Thai Customs website might be getting a few more hits than usual in the coming weeks.

http://blogs.ft.com/beyond-brics/2010/09/13/thailand-whos-buying-gold/

[Admin]

US dollar falls, gold hits record high 
Bangkok Post: 15 Sep 2010
Dollar falls, gold hits record


The dollar fell Tuesday against the euro and gold soared to a record high as investors took stock of global economic prospects and sought refuge in assets seen as safe havens.

The US currency also tumbled against the yen and the Swiss Franc which _ like gold _ attracts investors as a sure bet in times of trouble.

The euro in late day trade was up to 1.3018 dollars from 1.2880 on Monday.

The dollar meanwhile was trading at 83.04 yen against 83.64 on Monday. But at one point the greenback plunged to 82.93 yen, its lowest reading since May 1995, after Prime Minister Naoto Kan easily overcame a challenge to his party leadership from veteran powerbroker Ichiro Ozawa.

The news led traders to buy the yen as they considered a win for Kan meant that any immediate intervention on the currency markets to stem the yen's rise was unlikely.

The dollar also fell to 0.9944 Swiss francs from 1.0076 on Monday.

The price of gold later struck an all-time high above 1,269 dollars an ounce on Tuesday.

Gold hit 1,269.45 dollars on the London Bullion Market at 1410 GMT, beating the previous record of 1,265.30 dollars an ounce struck on June 21.

"Renewed sovereign debt concerns'' have driven up gold, said Robin Bhar, senior metals analyst at Credit Agricole bank.

Fears of a resurgent eurozone debt crisis are likely to stunt European economic growth prospects this year, the EU warned on Monday.

"The global recovery is still expected to be uneven and is surrounded by major uncertainties,'' the European Commission said in its autumn forecast, citing "the resurfacing of global imbalances, high debt levels and lingering tensions in sovereign-debt markets.''

Gold, whose two main drivers are jewellery and investment buyers, is also regarded as a good store of value in times of high inflation.

In another development, metals consultancy GFMS predicted that gold was set to reach a record high above 1,300 dollars an ounce this year.

"I think we could easily see gold spike comfortably above 1,300 dollars before the year's out,'' GFMS chairman Philip Klapwijk said in the independent group's latest annual survey of the precious metal.

"We'll probably get a fair bit of profit taking as we head into the New Year but I wouldn't take that as a sign that the party's over _ further gains in 2011 are far from out of the question.''

The euro began the day by losing ground against the dollar after data showed a collapse in German investor confidence.

The euro stumbled as the ZEW institute's sentiment indicator for Europe's biggest economy plunged 18.3 points to minus 4.3 points in September _ its fifth consecutive monthly drop and its second unexpectedly sharp loss in a row.

Tuesday's survey "reflects the idea that growth in Germany is expected to fall back significantly during the next six months, following the exceptionally strong growth seen in the first half of the year,'' said ABN AMRO bank economist Aline Schuiling.

But sentiment shifted later in the day as the dollar came under pressure on macroeconomic concerns.

While US retail sales were reported to have risen for the second straight month in August, economists at Briefing.com warned that sales were "likely to remain weak for quite a while given the current trends in employment, and the negative wealth impact for depressed prices for homes and stocks.''

In London on Tuesday, the euro changed hands at 1.3018 dollars against 1.2880 dollars on Monday, 108.07 yen (107.74), 0.8361 pounds (0.8347) and 1.2942 Swiss francs (1.2974).

The dollar stood at 83.04 yen (83.64) and 0.9944 Swiss francs (1.0076).

The pound was at 1.5572 dollars (1.5428).

On the London Bullion Market, the price of gold rose to 1,265.50 dollars an ounce at the fixing from 1,243.75 dollars an ounce on Monday.

http://www.bangkokpost.com/breakingnews/196255/dollar-falls-gold-soars-to-record-high

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UPDATE:

Dollar rises above 85 yen following Japan's first intervention in currency markets for six years
วันพุธ ที่ 15 ก.ย. 2553

Dollar rises above 85 yen following Japan's first intervention in currency markets for six years in bid to stem yen's appreciation against dollar and safeguard faltering recovery.

http://www.mcot.net/cfcustom/cache_page/102808.html
 

[Admin]

Gold hits $1,300 USD for the first time 
Bangkok Post: 24 Sep 2010
Gold hits $1,300 for first time

The price of gold struck an all-time high above 1,300 dollars an ounce on Friday after the dollar weakened following poor US data.

The price of gold has struck an all-time high above 1,300 dollars an ounce on Friday after the dollar weakened following poor US data.

Gold hit a record 1,300.07 dollars an ounce at 1318 GMT on the London Bullion Market.

It had already reached an all-time high earlier on Friday, extending a recent record-breaking run, with the precious metal boosted by its safe-haven status amid an unclear economic outlook.
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PRECIOUS METALS: Comex Gold Hits $1,300/Oz As Dollar Falls

NEW YORK (Dow Jones)--Gold futures Friday rose above $1,300 an ounce for the first time as a weakening dollar continued to enhance the metal's appeal as an alternative asset.

The most actively traded gold contract, for December delivery, recently rose $2.50, or 0.2%, to $1,298.80 an ounce on the Comex division of the New York Mercantile Exchange. The contract set a record intraday high of $1,301.60 an ounce early in New York pit trading, and has settled at record highs in six of the last eight sessions.

Weakness in the dollar has helped fuel gold's rise this week. The metal typically trades inversely to the dollar, which has been hit by speculation that the Federal Reserve will act to stimulate the sluggish economic recovery. Further government asset purchases, or quantitative easing, is seen pushing the dollar lower. The dollar Friday fell to it's lowest level against the Euro in five months after a report that U.S. durable goods orders fell in August.

Uncertainty in equities and currency markets continues to send investors into physical assets, said Scott Meyers, senior trading analyst with Pioneer Futures. "This is a recipe for records in gold. This thing hasn't stopped all summer long."

With gold in uncharted territory, the metal's near-term direction is uncertain. But unless the economic outlook significantly improves, more records are likely in the coming weeks as concerns about quantitative easing and high euro-zone sovereign debt linger, analysts said.

The metal has outperformed many other assets through the financial crisis because of it's perceived safe-haven status. Gold is bought by some investors on the belief that it holds its value better than other assets during economic turmoil, as it isn't closely linked to economic cycles. The precious metal has climbed this year as confidence in the global economic recovery wavered, setting records in May, June and September.

Meanwhile, the executive chairman of Nymex parent CME Group Inc. (CME) said the exchange had no plans for new delivery points for its benchmark gold contract. Terry Duffy said it was understandable that investors would want closer proximity to their physical gold holdings amid financial upheaval, but that the view could change and demand for delivery of the contract is typically low.

"People don't make or take delivery very often on Comex futures contracts," Terry Duffy said Friday. "I think when it comes to precious metals, you always need to have that option (delivery), but it doesn't mean they are going to take it."

Delivery of physical metal against Comex gold contracts can only be made in New York.


-By Matt Day, Dow Jones Newswires; 212-416-4986; matthew.day2@dowjones.com

(James Campbell contributed to this article.)

http://online.wsj.com/article/BT-CO-20100924-706560.html
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UPDATE:


Gold prices for Saturday

Bangkok Post * Published: 25/09/2010 at 10:10 AM


The Gold Traders Association this morning announced the buying price at 18,434.56 baht per baht-weight for gold ornaments and 18,700 baht per baht-weight for gold bar.

The selling prices were set at 19,200 baht per baht-weight for gold ornaments, and 18,800 baht per baht-weight for gold bar.

http://www.bangkokpost.com/breakingnews/198157/gold-prices-for-saturday

[Admin]

Price of gold hits another record high 
Bangkok Post: 13 Oct 2010
Gold hits new high price

The price of gold rocketed to another record high on Wednesday, powered by the weakening dollar after the US Federal Reserve signalled that it would consider more pump-priming stimulus measures.

The price of gold has rocketed to another record high, powered by the weakening dollar after the US Federal Reserve signalled that it would consider more pump-priming stimulus measures.

The glamorous metal hit $1,374.35 an ounce approaching 1500 GMT on the London Bullion Market.

"Once again gold dominates the headlines, with yet another new record high," said Rajesh Patel, head trader at trading firm Spread Co in London.

"The catalyst this time? The minutes from the 21st September FOMC released yesterday gave a pretty clear indication, not that it was a surprise to anyone really, that a resumption of QE is 'appropriate before long'."

In foreign exchange deals on Wednesday, the European single currency topped 1.40 dollars as the US unit was under pressure from the prospect of further monetary easing.

A faltering greenback makes dollar-denominated gold cheaper for buyers holding stronger units, pushing up demand for the metal and eventually its price.

Minutes from last month's Federal Open Market Committee (FOMC) meeting had showed Tuesday that the US Federal Reserve anticipates additional stimulus may be needed soon to prop up a slowing economic recovery.

"Such an indication accorded with the members' sense that such accommodation may be appropriate before long, but also made clear that any decisions would depend upon future information about the economic situation and outlook," the minutes read.

That signal fired up expectations the Fed will soon pump money again into the economy through major asset purchases, a measure known as quantitative easing (QE).

http://www.bangkokpost.com/breakingnews/201226/gold-strikes-historic-high-point

[Admin]

Gold rises to record high above $1,420 
Bangkok Post: 10 Nov 2010
Investors flock to gold as it breaks B20,000 mark

Gold prices hit a new high yesterday, when ornamental gold peaked during trade at 20,100 baht per baht weight (15.16 grammes) and gold bars at 19,750 baht amid global economic uncertainties.

B21,000 possible by year-end?

Responding to rising interest in gold, The Thailand Futures Exchange (TFEX) later this month will allow investors to put up trading deposits in US and Singapore dollars for the first time to ease the impacts of surging capital inflows.

As the dollar continues to weaken in light of the Federal Reserve's decision to spend $600 billion buying US government bonds, gold has emerged as an attractive alternative investment. Its trade has been volatile in recent months due to market uncertainties and concerns about the recovery of developed economies. Global gold prices also traded yesterday at a record US$1,414 an ounce.

Before yesterday, the local gold price peaked in mid-October at 19,500 baht per baht weight. The selling price closed yesterday at 19,700 baht after topping 20,000 baht earlier.

"Gold is seen as a safe haven amid uncertainties and its prices have become more volatile. They could rise to $1,600 or 21,000 baht by the end of this year. On the other hand, if the US economy recovers strongly, the price could dive to $1,100," said Boonlert Siripatvanich, president and CEO of Ausiris.

However, a sharp rebound of the world's largest economy is unlikely over the next 3-6 months.

For domestic gold bars, 18,000 baht could be the next price barrier. Investors are warned, however, that the price could drop sharply by 1,000 baht in one day if the US policy rate is raised.

YLG Bullion International, a member of TFEX, expects gold prices to reach $1,500 to $1,600 per ounce in the first half of next year, while for this year $1,450 should be the peak, according to vice-president Pawan Nawawattanasub.

Gold prices are rising due to the weakening US dollar on the back of the Fed's quantitative easing measure, she said.

"When coupled with the previous round of QE of about $1.7 trillion, the market could face high inflation, prompting funds to shift their investments to low-risk assets such as gold and others," she said.

Meanwhile, the TFEX announced it would accept the US and Singapore dollar as deposits for gold trading for non-resident investors, a measure recently approved by the Bank of Thailand. The rule will also apply to all derivative products in the market including interest-rate futures and stock indices as well as options starting from Nov 29.

Thai companies earning revenue in foreign currencies must still put up their deposits for gold trading in baht.

"Some foreign investors seek real returns, not currency-exchange gains," said Kesara Manchusree, TFEX managing director. "Although foreigners account for less than 10% of the TFEX's trading volume, the relaxation of the rule will give them the impression that we are becoming more open and ready to adjust ourselves [to all types of investors]. As well, this will elevate our standard of services to be on par with others in the region."

She said permission for dollar deposits for gold futures trading would also ease the demand of the baht as well.

As a result of the relaxed rule, Ausiris Futures forecast that daily trading volume in gold futures may grow to 7,000 to 8,000 contracts next year and 20,000 contracts over the next three to five years, from 3,500 contracts today.

Volume could also swell as the TFEX plans to extend night trading hours starting in the second quarter of next year.

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Gold rises to record above $1,420

Gold surged to a record high Tuesday, rising above the 1,420-dollar-an-ounce threshold for the first time as investors sought protection against inflation.

Gold hit 1,424.35 dollars a day after breaking through 1,400 dollars an ounce.

The precious metal was boosted by its status as a refuge asset, seen by investors as a hedge against inflation and currency volatility at a time of economic uncertainty.

Inflation fears have recently been fueled by a US Federal Reserve decision to spend 600 billion dollars (422.5 billion euros) to buy US Treasury securities and other assets.

The move is a bold bid by the US central bank to galvanize the US recovery by making extra funds available to lenders and thereby lowering long-term interest rates.

http://www.bangkokpost.com/breakingnews/205549/gold-rises-to-record-above-1420

[Admin]

Gold prices for Monday
Published: 3/01/2011 at 10:26 AM
Bangkok Post: Online news: Local News

The Gold Traders Association this morning announced the buying price at 19,453.48 baht per baht-weight for gold ornaments and 20,050 baht per baht-weight for gold bar.

The selling prices were set at 20,550 baht per baht-weight for gold ornaments, and 20,150 baht per baht-weight for gold bar

[nookiebear]

Remember the days when it was 4,000,,,,,,,,if only you could predict the future