Gold price fear near three-year lows of $1,312 an ounce

On Thursday , gold price trend move to near 3 years low at USD 1,312 an ounce . Fundamental effect from surge of US dollars directly to all major commodity prices. The dollar has pushed higher as the prospect of new Fed money has diminished in light of Bernanke's statement. The euro was down a further 0.5 per cent at $1.3217 Thursday while the dollar rose 1.3 per cent to 97.90 yen. The benchmark New York oil price was down $2 at $96.48 a barrel, while the gold price slid 4.6 per cent t, or a little over $61 to near three-year lows of $1,312 an ounce.

There is a risk we could see an even bigger sell-off if the $1,300 level is breached significantly, the time line for the Fed exit strategy is very much data dependent and based on a whole host of economic indicators between now and next summer, gold prices have slid sharply as the dollar goes sharply bid across the board.


For five years, the Fed has been pursuing an aggressive monetary policy to shore up the U.S. economy, which was battered by the financial crisis. Now that the U.S. economy has shown signs of improvement.

The dollar surge also effect negatively on stocks market all over the world. Stock market in Asia down, for Tokyo's Nikkei 225 down 1.7 per cent lower at 13,014.58 while Hong Kong's Hang Seng index tumbled 2.9 per cent to 20,382.87.  In Europe, the FTSE 100 index of leading British shares was down 2.2 per cent at 6,209 while Germany's DAX fell 2.3 per cent to 8,007. The CAC-40 in France was 2.2 per cent lower at 3,756

Using gold as safe heaven is at jeopardy right now . Gold price was reduce about 18.2 % from June 2012 to USD 1571 to USD 1285 per ounce today , Friday 21 , June 2013 . At this alarming rate , commercial gold investors were panicking. It will take a few months or a year to recover from this event . In April 2013 , gold trader surprise by sudden hiccup when gold price trend to below USD 1500 and now after 3 months , the price reduce to about USD 1300 per ounce .

Will gold losing it attractiveness for investor safe heaven ? Yes , it about time to be caution about gold . Losing 20% value of a year investment is too risky for safe heaven investment .

Will gold losing it attraction for retail buyer ? No . It will not . Lower gold price is major key for small stockist and trader . It is time to buy gold . One good thing about trading real physical gold is , there were alway buyer or seller in whatever trend the gold spot market go for direction.


In Malaysia, fear of losing for gold value already wide spread in investor forum and social chat board. Small trader , gold stockist and sell agent were busying to explain for what happening right now and support for gold long term investment.

Will gold price prevail itself as safe heaven ? Personally , i do think gold price will recover . What gold market need is time . But , investors will not wait another few years to just recover 20% loss . If aggressive action taken , many more investor will cut the loss and move on to other opportunity.


These event might be worrisome. It could trigger for worst closing price and bring gold price to lower pricing zone .

From other view , technically gold price chart was in constant bull market for years . With double top in yearly chart , it about time for bear market and correction.

Finally , can gold price reach USD 2000 per ounce as per hot investment news in 2012 ? I believe , it could be happening event right now. If gold loss it value USD 200 per ounce over slightly 2 months , it could increase in same manner .

Gold is gold for whatever flat money give it value. In old barter way, 1 gold tael is 1 teal tea leaf or a bucket of grain or 10 long yard of cotton.

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How to trade gold in Thailand commodity market.

How to trade gold in Thailand commodity market. 

Gold trading was one of the most lucrative businesses in the world. Every single minute's gold was a trade on the spot market and bulk gold market scene, what we call a physical gold market.

A major gold bullion distribution and the trading house which doing their part in UK London Metal Exchange, US CME and Europe Swiss Credit Suisse Gold.

Apart from using gold as financial portfolios for country economics, mega company investment schemes like Goldman & Sach, what drive the world market gold consumption?

Use of gold in industry and manufacturing. Many of this company have lock and order gold for next two years. All the main metals use in industries were purchase in the form of future nature.

It is the people who appreciate gold who drive gold market consumption. As i say market consumption, not gold price. The daily gold spot price effect by speculator and brokers for small commissions.

Gold in Thailand commodity market

People all over the world, using gold in jewelry and gold artifact or gold bullion. The purpose of gaining the yellow metal was an investment, personal appreciation and tradition like a wedding ceremony.

Western gold jewelry standard start with 14K to 18K purity and most Asia country use gold as much as 22K to 23K gold purity in their jewelry. The differential in gold preference standard makes Thailand using their gold design, color, purity, and weight.

Thai gold has more beautiful yellow color, beautiful design jewelry that i think made ages to produce, the textured surface, gold flake alike leave. They even have money tree look a like from gold and the important `bath` weight for gold . 1 bath equivalent to almost 1/2 troy ounces or 15.24g.

Using this requirement, Thailand Future Exchange (TFEX) have a future investment product base on gold market that drives Thailand gold trading. It was to meet local demand and appreciation for gold. Thai people have been buying gold for ages. Pass from grandmother to granddaughter; gold was seen as saving and sense of security.

There two type of the main products. First, ten bath gold delivery in the spot or up to nearest future three months. Second 50 bath gold delivery which at a larger quantity. Both products is having 23K or 96.5% gold purity.

Thai gold does deliver in the commodity market.

Their price is affected by world spot market price and controlled by TFEX regulations. What makes it is a major different from spot gold markets like CME gold future is that there is physical gold delivery upon completed purchase contract. The contract for spot ten bath gold contract can be concluded in 4 days. You are expecting to get real gold in weight about 152.4 g.

Secondly, the market can be reached easily by people. There were about 20 or more selling agent or big gold shop with a reputation that approve by TFEC to make the trade. Normal trading house register with TFEC can provide selling and buying gold commodity process as per normal broker. The gold market maker or selling gold shop are providing many other services as well. They clearly can do as below,

1. Buying or sell gold at daily spot price

2. Future spot gold order, i,e, short selling

3. Opening accounts for online and telephone booking

4. Received deposit of gold order, not regulated. Normally 10% - 15% of total contract value.

5. Delivery and  Collection of gold

6. Keep safe, or vault services.

There several operating gold wholesaler that doing business at higher professional level. Gold shop like MTS , Hua Seng Heng , YLG, Classic Gold Group .

Now how can you sell the Thai bath gold or short selling? Put it away so much easier; you make a call to the gold shop where you buy or any approve TFEC broker house, get the market selling price and got the order number. If the contract concluded, you have to deliver the gold to their office before 12 pm next day. The business will be completed within four days, and you will have your money in the cheque or deposit into account by Thailand clearing house. There are always commission charges apply.

There are other ways to safe guard your gold. You can option for the gold shop to keep your gold in their vault. They will issue a gold certificate for your gold item saving. This is same as paper gold saving in ETF gold scheme, but a big different is your can walk to the gold shop and demand your gold anytime.

In reality, Thai people do not scare to show their wealth. Gold is put on a show for family status and wealth. Most Asia country uses gold as the measurement of status, hobby, and prospecting to have good wife or husband.

For the most Muslim country, using gold and silver are appreciated for substitute currency. There was once an idea to made everyone use the same currency . I think that day will come in long future and i hope to save enough gold for my future generation. Not for wealth but the reminder of the great color of gold, if gold is depleted one day. Try yourself to trade gold in Thailand commodity market and watch the investment grow if you doing done correctly. 

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