Gold price plunges below psychological Bt18,000/baht weight level

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Thailand’s domestic gold price nosedived below the psychological resistance level of Bt18,000 per baht weight Friday (June 28).

Boonlert Siripatvanich, chief executive officer of Ausiris, said the decline in the local gold price is in tandem with the global price movement which plunged from US$1,200/ounce to its lowest at $1,180/ounce mainly due to negative sentiment and diminishing investor interest in secured assets such as the precious metal.

The gold price has dropped below the capital cost at $1,250-1,300/ounce and most gold funds chose to buy bullion from smaller investors who cut losses and sold their metal holdings at US$1,200-1,300/ounce, he said.

He added that the gold price trend remains volatile but the drop will be less severe from the previous $40-50/ounce in one day to around $20/ounce. The new technical supports are $1,180/ounce and $1,150/ounce respectively.

“The decline rate has overtaken the increase rate in the past month due to investors’ confidence in the US economic revival, consequently investing in other risk assets,” he said.

The Gold Traders Association adjusted the domestic gold price this morning with the deepest plunge at Bt350/baht weight to Bt17,900/baht weight for bullion and Bt18,300/baht weight for ornaments.