The purposed launch of gold contract has been criticized by Taiwan gold association, which has called for a delay in the launch date.
The Gold Traders Association of Thailand has asked the country’s regulator to delay the introduction of gold futures on the Taiwan Futures Exchange.
Jitti Tangsitpakdi, the association’s president, met the country’s Securities and Exchange Commission last week to ask for the futures delay. He said the launch could damage the economy.
“While gold shops may not be affected much in the first year, we could see over half of the 7,000 shops in Thailand closed in three years as investors move from physical gold investment to futures trading,’“ Jitti said.
He said that the market for gold had been declining in recent months. “We were asked to establish a committee to study the impact of gold futures,” Jitti said. The price of gold has moved from a high of $1,030 an ounce in the spring
to levels closer to $800 in recent months.
However, Kesara Manchusree, the TFEX managing director, said the exchange was on track for the launch of gold futures next month.
The exchange is testing the clearing and settlement system in preparation for the launch, as gold joins SET50 index futures and options as items traded on the TFEX.
