Traders' association presses BOT on need for gold exchange
The Gold Traders Association has requested a meeting with the Bank of Thailand on the proposed establishment of a gold exchange to protect investors from risk associated with unregulated online gold traders and brokers, said the chairman of the associatio
There has been strong interest in online gold trading lately, and there are numerous online traders, only some of which are registered with the association, he said. Currently, capital of Bt500,000 to Bt1 million is needed to register with the Commerce Ministry to set up an online gold-trading company.
Investors should be wary of potential frauds associated with unregistered online gold traders who may close operations at any time without advance notice, Jitti warned. There is currently no regulatory body to supervise online gold trading, and such regulation is not in line with the objectives of the Gold Traders Association.
The volume of gold trading in Thailand is quite large, at 200 tonnes a year, or 10 per cent of the global volume. Such volume attracts foreign firms engaged in online trading, which makes it necessary to tighten up the legal framework, Jitti said. The Gold Traders Association wants the Commerce Ministry to back this request to the central bank for a gold exchange, he added.
Gold prices should continue to decline in the short term after the US government was able to secure another six weeks before resolving its debt-ceiling issue. Downward pressure on gold prices will depend on how soon the United States can deal with this.
Gold prices should fall to the range of US$1,245-$1,240 per ounce, Jitti said.
