Wednesday, 20th September 2006 (3220 views)

A military coup in Thailand that analysts feared could disrupt the political stability of the Far East has not affected the price of gold on world markets, prompting the metal to continue its recent downward trend.

The price of gold has steadily declined over the past few weeks as it tracked the similar slump experienced by crude oil prices.

A new three-month low of $572.30 an ounce on spot gold was marked on the London market.

Thailand's military coup, which took place overnight on Tuesday (September 19th) has been largely ignored by markets, despite some analysts predicting a resurgence on gold if any political tensions arose in the region as a result of the coup.

Military divisions from the country's armed forces took control of the capital Bangkok and officially ousted Prime Minister Thaksin Shinawatra.

The Thai head of state was attending a United Nations conference in New York when the coup occurred and has since addressed his nation on television, despite there being little popular support for his return.

So far the military takeover has been largely peaceful and trouble-free, meaning gold did not experience any gains as it usually does in times of political or global tension.

 

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