BANGKOK- The Gold Traders Association (GTA) says the US Federal Reserve’s interest rate hike this month will cause a drop in gold prices.
GTA President Jitti Tangsitpakdi cited gold prices on Tuesday morning, which plummeted by 50 baht to 18,250 baht per baht weight, slightly buoyed by currency inflation.
He pointed out other negative factors, like the supply glut of oil that has depressed global oil prices and the worldwide economic slowdown.
Mr. Jitti forecast that global gold prices will fall somewhere between 1,060 and 1,200 US dollars per ounce, while domestic prices will be between 17,500 and 20,500 baht per baht weight, provided that the Thai currency holds at 36 baht per dollar. Therefore, he also expects most gold buying to be short-term investments.
