Taiwan's investors cautious about buying gold despite price fall

Taipei, June 23 (CNA) Taiwanese investors, who purchased over 10,000 gold bars in April, were more cautious about the market now that the international price has tumbled again to below US$1,300 per ounce, local jewelry shops said Sunday. Earlier in April, a group of investors, mostly mothers, created a gold buying craze by flocking to the stores as news emerged that the U.S. Federal Reserve may be ready to bring quantitative easing to an end, pulling down the price of gold to US$1,321 per ounce. The purchasing price of 3.75 gram of gold was at NT$4,450 (US$147.35) while the selling price at local shops stood at NT$5,000, the lowest in the last three years, according to a jewelry union in Taipei. The international price that was down to less than US$1,300 per ounce this month was driven by speculations that U.S. Federal Reserve may wind down its quantitative easing policy, it said. More investors were inquiring about the market but the similar trend of buying craze has not occurred, Shih Wen-hsin, a union official, said. He expects these hesitant investors will enter the market when the price bounces back next week. After the international gold price fell below US$1,300, the number of people opening gold passbook accounts also dropped because they were adopting a wait-and-see attitude, Bank of Taiwan said. (By Kao Chao-fen and Maia Huang)