July 15, 2008

Bangkok Gold Price Surges to Record High Amid Mideast Tension, Weaker Dollars

Bangkok gold price surges to record high amid Mideast tension, weaker dollars

BANGKOK, July 14 (Xinhua) -- Gold price in Bangkok, one of the major gold market in Southeast Asia, has surged to a record high upon concerns over renewed Middle East tensions and the weakening U.S. dollar, Thai News Agency quoted an industry executive as saying Monday.

Gold Trading Association president Jitti Tangsitthipakdee said the price of gold ornaments soared to a new high of 15,600 baht ( some 463 U.S. dollars) per baht weight of gold since an undetermined number of investors moved their investments to the Bangkok market in response to concerns over the confrontation between Iran and Israel.

The baht weight, with the same name as the Thai currency, is a measurement unit for gold unique to Thailand. One baht equals to 0. 487 troy ounces.

The investors were also worried about the declining U.S. dollar and economic troubles in the United States after the U.S. Federal Reserve had decided to bail out Indy Mac, one of the country's mortgage lender giants.

In addition, he said, the baht's weakening had fueled the value of gold in Bangkok though the price of gold abroad stayed unchanged at around 960 dollars per ounce.

Jitti said the local price of gold ornaments is likely to continue to rise and surpass the level of 16,000 baht (some 475 dollars) per one baht weight of gold this year if the Thai currency continues to weaken.

At present, gold ornaments are traded at 14,935.60 baht (443 dollars) per baht weight for the purchase price and 15,650 baht ( 465 dollars) for the selling price, and gold bars at 15,150 baht ( 450 dollars) for the purchase price and 15,250 baht (453 dollars) for the selling price.

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