Gold price likely to hit Bt17,000

Global gold prices also surpassed US$1,000 (Bt35,660) per ounce as investors shifted their money from other risky assets to the safe-haven metal.

Jitti Tansithpakdee, president of the Gold Traders Association, said yesterday that while global gold prices would still be volatile, local gold prices were expected to reach a new record high of Bt17,000 within the next one or two months.

He warned local investors to beware of volatility in gold prices. Over the past month a number of investors have been selling gold worth several 10 thousands of baht.

Gold shops yesterday bought bars at Bt16,250 per baht weight, up Bt200 from Bt16,050 the previous day, selling at Bt16,350, also up from the previous day's Bt16,150. Ornaments were bought yesterday at Bt16,008.96 per baht weight and sold at Bt16,750.

Jitti said local gold prices continued to surge due mainly to rising global gold prices as demand for gold increased because central banks in several countries were buying it to replace key currencies as their international reserves.

"Gold seems to be the only safe haven," said Ron Goodis of Equidex Brokerage in New Jersey. "Currencies are losing value. Gold may break through $1,000 and not look back."