Bangkok: The president of the Gold Traders Association has forecasted a continued rise in gold prices, despite challenges in the global market. The association’s president, Mr. Jitti Tangsitpakdee, emphasized that recent news of tax collection is negatively impacting the gold market, with numerous gold trading centers closing in various countries.
According to Thai News Agency, Mr. Jitti stated that gold prices are on an upward trend, noting that this morning the price increased by 400 baht. This brings the selling price of gold bars to 55,300 baht and the buying price to 55,200 baht. The selling price of gold ornaments stands at 56,100 baht, with the buying price at 54,090 baht. The rise is attributed to market expectations of a potential interest rate cut by the Fed, with the announcement anticipated on Thursday morning.
Mr. Jitti mentioned that, in the short term, some profit-taking could occur as gold prices have seen a steady increase since September 1, 2015, with a cumulative rise of 3,000 baht. However, in the long term, there remains potential for further appreciation, driven by expectations of additional interest rate cuts at future Fed meetings.
The Gold Traders Association recently engaged with the Bank of Thailand (BOT) due to the baht’s continued strengthening, marking its highest level in four years. Mr. Jitti indicated that the BOT has asked large gold traders and shop owners to provide more detailed trading data. The traders have expressed their willingness to cooperate, highlighting that gold exports to Cambodia have long been significant for Thailand. As a regional gold trading hub, transactions are processed through the banking system, ensuring proper identity verification and declarations to Cambodia.
Mr. Jitti addressed rumors regarding a potential government-imposed tax on gold trading, asserting that Thailand’s gold and gemstone markets have advanced significantly, contrasting with developed countries that have abolished sales taxes. He expressed skepticism about the likelihood of such a tax being implemented, suggesting it would be counterproductive and detrimental to the market.