BoT warns gold speculators to be aware of gold price volatility

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BANGKOK, 13 June 2012  – The Bank of Thailand (BoT) is keeping an eye on gold speculators amidst the unpredictable price fluctuation, insisting however that it will not impose any measures to control the price. 

BoT Governor Prasarn Trairatworakul has revealed that the central bank has been keeping an eye on the gold price movements and keeping records of the gold trading, as both have effects over the exchange rates.

After discussing with the gold traders, Mr Prasarn said more people have reportedly been buying gold for speculation. He explained that many of them turn to speculating on gold instead of the US dollar as the greenback has been unstable, whereas the prices of gold have been volatile.

Concerning the price fluctuation, the BoT will not at present enforce any measures to interfere with the gold market or control the gold purchase. However, if there is any change, the central bank will discuss with the Finance Ministry first before taking action.