Gold price to drop further this month

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BANGKOK, Nov 12 — The Gold Research Center projects the gold price in Thailand will continue to decline this month and range from Bt17,000 to Bt19,000. 

It warns the price can drop to Bt15,000 per baht-weight next year if the US Federal Reserve raises its interest rate sooner than expected.

Kamolthan Pornpaisalvichit, director of the Gold Research Center, said the gold price was likely to fall further in the next 3-6 months after plunging below its technical support level of US$1,150 per ounce. He said that analysts expected the price to drop to US$1,000 an ounce next year or even lower than that.

Under the circumstances and with the possibility of the Fed raising its interest rate faster than expected, Thailand’s domestic gold price may fall to Bt15,000-15,500 per baht-weight at the exchange rate of Bt32.75 per US dollar and investors can move from gold to savings, bonds and shares, Mr Kamolthan said.

For this month he predicts the price will drop to US$1,100-1,220 per ounce and the local price will range between Bt17,000 and 19,000 per baht-weight. He said that the gold price might recover during upcoming holiday periods in January and February but he is also concerned about the value of the US dollar as that could rise due to the American economic recovery.