BANGKOK, 5 August 2011 – Gold price is expected to increase further because financial institutions are interested in buying more gold while investors are warned to monitor price trend carefully before making decisions.
Gold Traders Association President Jitti Tangsitthibhakdi stated that gold price had been hitting new records in the past two months and finally went up to 1,664 US dollars per ounce. He said the price tends to increase further but not in a wide range.
Mr Jitti attributed the price increase to rising gold demand among financial institutions worldwide, especially central banks in Asia, including the Bank of Thailand, which bought another 17 tons of gold during the past weeks, adding up its gold reserves to 130 tons, the highest amount in three years.
The Gold Traders Association president said people now have lower trusts in the US economic situation although it recently could increase its debt ceiling. Investors have turned to hold more gold bullions, which are more secured than the US dollars.
Mr Jitti elaborated that gold price has accelerated by over 180 US dollars per ounce in one month, which is very high; thereby, investors should be cautious against selling forces. He noted that gold price remains in upward trend in the long-term.
The president recommended that gold investors should divide the amount of gold for sale to gain profits if they are now holding adequate amount of gold; however, investors wanting to buy gold should wait until gold price drops before making new purchases.