BANGKOK, 22 April 2011 – The global gold price will possibly hit a new high of 1,600 US dollars per ounce by the end of the year while the domestic price may rocket to 22,000 baht per one-baht weight in the third quarter.
YLG Bullion and Futures CEO Tipa Nawawattanasup stated that the gold price in Hong Kong’s market on Thursday opened at 1,508 US dollars per ounce, which was a new record; therefore, the resistance line has been changed to 1,530-1,550 US dollars per ounce.
Ms Tipa suggested that gold investors should be cautious about impact from profit-taking selling out when the price rockets to the aforementioned range. She also indicated that more investors are turning to hold the precious metal as it is perceived as a safe asset.
The expert expressed her confidence that the global gold price would hover around 1,600 US dollars by the end of the year; however, the domestic price would not exceed 23,000 baht per one-baht weight thanks to Thai baht appreciation.
As for factors supporting upward movement of the gold price, Ms Tipa pointed out that investors’ concern over the global economic uncertainty, particularly in the US and Europe, combined with higher inflation rates and the ongoing uprising in the Middle East have all contributed to the price hike.
Ms Tipa noted that India and China have set targets to respectively import 800 and 600 tons of gold within this year. She said China has already imported about 300 tons in the first three months.