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Gold price drop temporary, not on five-year downward trend, NESDB head says. Gold used worldwide for bank reserves & speculation. Cannot fall for long. 

Small sized gold bars held by investors (Source: Wikipedia)

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NESDB: Gold price drop temporary

21 May 2013
Online Reporters

The decline in the global gold price will be only temporary and comes on the back of speculation that Italy and other countries in Europe could sell gold reserves for debt repayment, the secretary general of the Office of the National Economic and Social Development Board (NESDB), Arkom Tempitayapaisit, said on Tuesday.

Mr Arkom said he disagreed with an analyst at a foreign bank who forecast that the gold price is now on a five-year downward trend and will fall below US$1,000 per ounce.

It would be difficult for the gold price to go down for five years, because gold is not only held as a reserve it is also a speculative commodity. The current decline in its price was because some countries in Europe have insufficient cash reserves to make debt repayments. One of their options is to sell some of their national gold reserves, he said. This bulk selling brings down the price

Cyprus had earlier sold gold and it is expected Italy will soon follow suit. This would bring down the global gold price for a short time, he added.

The central bank also keeps gold as a reserve and if it sells gold at this time it would face a loss because it bought in at a higher price, he said

Reuters reported the gold price was down for the eighth straight day to US$1,338.85 per ounce on Monday, May 20.

The gold price dropped to its lowest level in two years, at US$1,321.35 an ounce, on April 16 on investors' concerns the US would delay its plan for further quantitative easing (QE) to stimulate the economy, which is showing signs of recovery

On Monday, the Gold Traders Association had changed gold prices five times, with a total decline of 200 baht on the day. The buying price closed at 19,050 baht per baht weight and selling price at 19,150 baht for gold bar.

The gold prices opened up 450 baht on Monday’s close on Tuesday morning. The buying price opened at 19,500 baht per baht-weight and selling price at 19,600 baht for gold bar.

(Source: Bangkok Post, Breakingnews, NESDB: Gold price drop temporary, 21 May 2013, Online Reporters, link


Gold Vocabulary

gold - the yellow coloured valuable metal used in jewelry and held by some as an investment and way of saving money ทอง (See Wikipedia)
gold bar - ทองคำแห่ง (See Wikipedia & good delivery bar)

baht-weight - the Thai measure for the weight of gold บาท (See Wikipedia)

temporary - for a short time only, short-term, i.e., not permanent ชั่วคราว
Gold price drop temporary

global - throughout the world ทั่วโลก ทั้งโลก all over the world, including the whole world
global gold price
decline in the global gold price

speculation - buying an asset hoping that its price will go up and you will make money, it could go down with a loss of money, assuming the risk of loss in return for the uncertain possibility of a reward (See Wikipedia)

comes on the back of
- happening after
comes on the back of speculation

debt - an amount of money that you owe หนี้
debt repayment - paying back money that you borrowed to the lender

reserves - the amount of foreign currency or gold held by a national bank, which is used for dealing with the national banks of other countries เงินสำรอง
gold reserves

national -
for the whole country (belonging to the government)
national gold reserves

cash - money เงินสด
cash reserves

gold held as a reserve
gold
held as a speculative commodity

countries in Europe could sell gold reserves for debt repayment

The decline in the global gold price will be only temporary and comes on the back of speculation that Italy and other countries in Europe could sell gold reserves for debt repayment, the secretary general of the Office of the National Economic and Social Development Board (NESDB), Arkom Tempitayapaisit, said on Tuesday.

trend - a gradual change or development that produces a particular result ทิศทาง แนวโน้ม
a downward trend

forecast - what experts believe will happen in the future; a statement about what will happen in the future based on information available now พยากรณ์

forecast
that the gold price is on a downward trend

Mr Arkom said he disagreed with an analyst at a foreign bank who forecast that the gold price is now on a five-year downward trend and will fall below US$1,000 per ounce.

It would be difficult for the gold price to go down for five years, because gold is not only held as a reserve it is also a speculative commodity.

current - of the present time ปัจจุบัน
current decline

debt repayments - paying money borrowed back to lender who gave it

insufficient - not sufficient, not enough ไม่พอ
insufficient cash reserves

insufficient cash reserves to make debt repayments

The current decline in its price was because some countries in Europe have insufficient cash reserves to make debt repayments.

options - choices;  the different things that someone can choose to do ทางเลือก

One of their options is to sell some of their national gold reserves

bulk - done in large numbers or amounts จำนวนมาก เป็นจำนวนมาก เป็นกุรุศ
bulk selling - selling large amounts of something at one time
bulk selling brings down the price

expected - believe will happen คาดว่า (จะเกิดขึ้น)
Cyprus had earlier sold gold and it is expected Italy will soon follow suit. This would bring down the global gold price for a short time, he added.

Reuters reported the gold price was down for the eighth straight day to US$1,338.85 per ounce on Monday, May 20.

concerns - things that people are worried about; worries ความกังวล
investors' concerns
the gold price dropped  on investors' concerns

quantitative easing (QE) - an expansionary monetary policy used by the central bank of the US to get the economy going again after a slowdown, used when the usual monetary policy has become ineffective: "A central bank implements quantitative easing by buying financial assets from commercial banks and other private institutions, thus increasing the monetary base. This is distinguished from the more usual policy of buying or selling government bonds in order to keep market interest rates at a specified target value" (See Wikipedia)

delay - to make something happen at a later time than originally planned or expected เลื่อน
delay plan for further quantitative easing (QE)

stimulate - act so as to increase activity encourage more activity, make it move and start working again กระตุ้น
stimulate economy - encourage activity, growth, and development  in the economy
stimulate the economy

investors' concerns that the US would delay its plan for further quantitative easing (QE) to stimulate the economy

recovery - when the economy gets better after an economic downturn or recession (more jobs, higher incomes) การฟื้นฟูสภาพ
the US economy is showing signs of recovery

The gold price dropped to its lowest level in two years, at US$1,321.35 an ounce, on April 16 on investors' concerns the US would delay its plan for further quantitative easing (QE) to stimulate the economy, which is showing signs of recovery


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