Thai investors advised against panic as gold price hits lowest level in 30 years

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BANGKOK, April 16 – Local gold prices may dip below Bt20,000 per baht weight, or possibly even Bt18,000 when the Thai bullion market opens tomorrow after the four-day Songkran holiday, an analyst predicted.

Tipa Nawawattanasub, chief executive officer of YLG Bullion and Futures, said the global gold price has nosedived from US$1,580 per ounce last Friday to US$1,320 per ounce today – the deepest slump in three decades.

She urged investors to take a wait-and-see precaution as analysts predicted the next resistance level at US$1,300 per ounce.

If the price is maintained at the resistance level, it will possibly inch up, otherwise it may slip further to US$1,250 per ounce, she said.

Gold prices declined rapidly at US$50-70 per ounce daily during the last several days, she said but urged investors not to panic.

She said an initiative by the Cyprus central bank to sell 13 tonnes of gold bullion in its reserves to garner 400 million euros to salvage the country’s finances has triggered concerns among European countries.

Italy and Portugal which have gold reserves at 2,000 tonnes and 300 tonnes respectively may follow Cyprus while many investment funds have stoked the situation by selling gold in their stocks, she said