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Gold prices in Bangkok have surged to a record high upon concerns over renewed Middle East tensions and the weakening of the
US dollar, according to an industry executive.

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

The investors were also worried about the declining US dollar and economic troubles in the United States after the US 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 although the price of gold abroad stayed unchanged at around US$960 per ounce.

Mr. Jitti said the local price of gold ornaments is likely to continue to rise and surpass the level of 16,000 baht per one baht weight of gold this year if the baht continues to weaken.

At present, gold ornaments are traded at 14,935.60 baht for the purchase price and 15,650 baht for the selling price, and gold bars at 15,150 baht for the purchase price and 15,250 baht for the selling price.

– TNA 2008-07-14

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