Traders getting more positive on gold price
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The gold confidence index' rise by 4.95 points from last month to 51.72 reflects the first positive outlook in four months, supported by the weak baht, gold demand during the Indian wedding season and the buying period at the beginning of a new year.
Major traders expect the gold price this month to move within the range of Bt17,000-Bt19,500 per baht weight, Kamoltan Pornpaisalvijit, director of the Gold Traders Association, said yesterday.
The index was below the midway level for three straight months, but the figure near the 50-point mark reflects the still-weak confidence of gold investors and traders in the recovery of the gold market.
The projected US economic recovery also raises fears of possible interest-rate hikes there.
The index for next quarter is expected to remain above 50 points for the second month, up 5.22 to 59.17, on the weak baht and New Year buying season.
Among the nine views compiled from major traders, exporters and forward-contract brokers by the association, most have a positive outlook for the gold price this month. Three traders believe that on average the price will rise, while four think the average gold price will be close to November’s level. The other two believe the price will drop this month.
Traders see the world market price in the range of U$1,220-$1,240 per ounce, with the lowest range at $1,140-$1,160.
The expected local price range for 95.5-per-cent-pure gold bar is Bt19,000-Bt19,500 per baht weight, with the lowest range at Bt17,500-Bt18,000.
