European debt crisis to further boost world gold prices

BANGKOK, March 19 (TNA) - World gold prices are expected to further rise in the medium to long run, as the ongoing European debt crisis has shored up global demand for gold. Songkiart Watanawit, Managing Director of SPC Precious Metal Co., Ltd., said Monday that world gold prices have now narrowly moved between 1,500 and 1,850 US dollars per ounce, but the world gold prices are expected to further rise in the medium to long run, as the ongoing European debt crisis, the stagnant US economy and the depreciation of the Euro and the US dollar will all cushion global demand for gold. At the same time, Songkiart acknowledged, demand for gold has surged in such emerging economies as China and India, particularly among new millionairs. Meanwhile, domestic gold prices have hovered between 24,000- 25,000 baht per baht weight and are expected to keep rising to 28,000 baht per baht weight in the third and fourth quarters of this year. The business executive recommended that gold investors, therefore, switch to medium to long term investment, acknowledging, however, that investment in gold on the domestic market since the beginning of this year has seen a 16 per cent return, as the world gold prices have rebounded from their lowest level of 1,565 US dollars per ounce to a higher level of 1,780 US dollars per ounce. (TNA)