Gold fluctuate slightly over next fortnight, may drop in long term
The price of gold over the next two weeks is expected to fluctuate within a small range, while in the long term it will show a downward tendency, Gold Traders Association chairman Jitti Tangsitpakdee said on Monday.
“One of the factors that could affect the price of gold next year is the economic and international trade policies to be announced by the newly elected US president,” he said. “Traders should keep a close eye on international atmosphere starting as early as January.
“The gold price early this year was at Bt21,500 per baht weight, and then it gradually rose to the highest on August 7 at Bt30,400 per baht weight before falling again to Bt25,400 per baht weight in October,” he added. “The price as of this morning was Bt26,300, rising a little from last week, which is enough to attract investors and those prefer saving money in the form of gold.
“About 95 per cent of gold being sold this year are gold bars, while few have been buying gold ornaments,” added Jitti.
“Also, people have been selling off their gold jewellery as they need cash during this economic recession. This has resulted in gold shops suffering low profits as gold bars have a lower profit margin than gold ornaments.
“Gold shops need to be extra careful in cost management, as their profits are dropping while their fixed costs are still the same,” he said.