BOT: 130 tonnes of gold in reserves
Published: 4/08/2011 at 12:28 PM
Bangkok Post: Online news:
Thailand has purchased another 30 tonnes of gold recently, increasing the total gold reserve to 130 tonnes, Bank of Thailand governor Prasarn Trairatvorakul said on Thursday.
"The amount of gold reserves represents three per cent of the country's international reserves.
"The central bank is studying whether it should raise the ceiling to more than three per cent," Mr Prasarn said.
The BOT also planned to invest in other foreign currencies besides the US dollar, the euro and Japan's yen. It now had about seven billion yuan to support the liquidity of commercial banks, he said.
Gold Traders' Association chairman Jitti Tangsithpakdi said he expected gold prices to rise further after reaching a new high last month.
Mr Jitti said gold recently jumped to US$1,664 an ounce and would likely increase further, but only to some extent.
The prices rose continuously as financial institutions worldwide continued to purchase gold at the same time, he said.
The BOT had added 17 tonnes of gold in the last week and now had 130 tonnnes in its reserve. The bank had kept less than 100 tonnes in the past, he said.
"Most people do not have confidence in the United States economy even though its debt ceiling has been raised. They are concerned about its large debt and the possibility that its credit rating could be downgraded.
"This has caused the dollar to weaken and more people to invest in gold instead since it is safer.
"However, I believe gold prices might not increase significantly as the resistance level is at $1,700 per ounce and there could be a selloff," Mr Jitti said.
He said gold prices would likely continue moving upward in the long run.
Gold trading in the domestic market was not lively as there was little gold available. Investors would have wait for another time to purchase gold, he said.
The Gold Traders' Association on Thursday morning set the buying price at 22,967.40 baht per baht-weight for gold ornaments and 23,300 baht per baht-weight for gold bar.
The selling prices were set at 23,800 baht per baht-weight for gold ornaments, and 23,400 baht per baht-weight for gold bar.
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