The nosediving gold price - currently US$1,220 to $1,270 an ounce, down from last September's peak of $1,920 - is compelling at least 75% of investors in local gold futures to shy away from the market.
Open interest in gold futures has declined to 2,000 contracts a day from more than 10,000 in recent years, said Warawoot Benjaputtarug, the managing director of GT Wealth Management, one of six gold trading members of the Thailand Futures Exchange (TFEX).
More importantly, up to 80% of those contracts are from brokers' proprietary trading, he said. Most Thai investors try their hand only in bullish markets.
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