Gold plunges to below US$1500!

Gold sales soar as price drops below Bt20,000 per baht weight!


18 April 2013
Buy: ฿18500
Sell: ฿18600
Last Update: 2013-04-18 09:54Price Change: -350


Buy: ฿18900
Sell: ฿19000
Last Update: 2013-04-18 16:45Price Change: +50

Local gold has been sold below Bt20,000 per baht weight for the first time since 2011, following a sharp fall in global prices over the past few days.

thai-gold-price-todayThai gold prices were adjusted eight times yesterday for an aggregate cut of Bt2,400 per baht weight to Bt18,950, as business resumed after the long Songkran holiday period.

The falling prices drew heavy traffic to Yaowarat gold shops. As some shops remained closed, others were crowded and inventory, particularly that of bullion, ran out.

Hua Seng Heng, the oldest gold shop in Chinatown, had to issue coupons to clients, urging them to pick up their purchases on April 24.

As gold and silver prices changed more than 10 per cent, the Thailand Futures Exchange temporarily halted trading in order to help investors digest news.

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong, trying to calm the nervousness, said the dip would be short-term as gold remained an asset with relatively high security. Gold-price speculation is normal, he added.

“Gold was set up for having a proper correction,” Jim Rogers, chairman of investment company Rogers Holdings, said on Bloomberg TV. “This may be the proper correction and, if so, then it will make a bottom and we can all buy gold again because it is going to be much higher over the decade.”

thai-gold-priceThe price of gold plunged last Friday by 5 percent and closed at US$1477 (฿20,300 per baht) , it fell to its lowest levels since July 2011, hurt by a draft plan for Cyprus to sell gold reserves as part of its bailout by international lenders.

Gold traders association in Thailand have not announced their local prices as they remain closed for the long holiday weekend for Songkran (Thai new year) which will last till Tuesday (13th to 16th April).

Gold is now some 22 percent below the record peak of $1,920.30 an ounce set in September 2011.
thai--gold-price-today-nytime“The scale of the decline has been absolutely breathtaking. We tried to rally and that just didn’t get anywhere … there hasn’t been any downside support, it’s like a knife through butter,” Societe Generale analyst Robin Bhar said.
“Could it retest $1,300 or $1,200 on a short-term technical basis? Absolutely yes,” said Geoffrey Fila, associate portfolio manager at Galtere Ltd, a commodities-focused hedge fund in New York with about $600 million under management.
“If Cyprus can break the gold market, then (there are) many reasons to be worried, with Slovenia, Hungary, Portugal, Spain and Italy in line,” said Milko Markov, an investment analyst at S.K. Hart Management.

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