Gold traders, BoT discuss controls

Moves seek to ease pressure on baht

- NUNTAWUN POLKUAMDEE NAREERAT WIRIYAPONG

Gold traders have proposed dollar-denominated trading as a way to curb baht volatility, as the Bank of Thailand scrambles to ease the strength of the Thai currency, while bullion soars to a fresh all-time high.

The market is focused on tomorrow's meeting between Thai gold traders and the central bank, as the industry pushes for alternative measures to relieve pressure on the baht.

The debate comes as the baht has gained 4.2% over the past month and international gold prices increased 9.3%.

Pawan Nawawattanasub, chief executive of YLG Group, said the industry already submitted proposals to the central bank, including allowing clients to trade gold directly in US dollars.