Gold prices are on the rise both in Thailand and the world markets due to the fears of people for international terrorism, according to the Thailand's Gold Traders' Association.

Khun Chitti Tangsithiphadki, President of the Thai Gold Traders' Association said that the price of gold on Saturday had climbed to $US 365 an ounce, leading a domestic rise in Thailand for gold bars and gold ornaments of TBH 7,200 to TBH 7,500 per baht, the local Thai weight scale for gold in Thailand id the baht, same name as the Thai currency.

These soaring gold prices were due to the fears of terrorism, as well as the fluctuation of the stock markets and currency in the United states, Chitti Tangsithiphadki, said.

Khun Chitti Tangsithiphadki also said it was very likely that the world and Thai gold prices would continue to rise in the very near future, with Thailand's gold prices expected to increase by another TBH 200 to 300 per baht weight.

Chitti Tangsithiphadki noted, however, that the price for gold in the world markets was now lower than the gold price of $US 368 dollars an ounce after the outbreak of the war with Iraq, earlier this year.

For the prospect of the gold trade in the Thai market in the first six months of this year, Tangsithiphadki said that demand for golden ornaments had dropped during this period, due to the rising prices of Thai gold, but the purchases of gold bars had increased, as Thai speculators sought for possessing gold commodity for speculated profits. The general public in Thailand was buying gold bars as a safe asset source.

The fluctuations of the gold price in Thailand and the world markets will further rise or drop in the second half of this year depending on the world events and situations and events in the international community, Chitti Tangsithiphadki further said.