The Gold Trader Association said it will protest Thailand Futures Exchange Plc (TFEX)’s move to allow investors to invest in smaller amount of gold futures.

The association’s secretary Jitti Tangsitpakdee said TFEX’s move to cut an amount of minimum investment per gold futures contract from currently at 50 baht in weight down to 10 baht would draw most of the gold buyers away from gold stores to invest in gold futures as it require minimum margin deposit of only 20 thousand baht ($606).

Mr. Jitti said the association would yet have to discuss how it can halt TFEX’s movement internally with its members.

“We have discussed the matter with both TFEX and the Stock Exchange of Thailand, but we do not yet get response from anyone of them,” he said.

Mr. Jitti said the association would like TFEX postpones its mini gold future trading option for at one year or more in order to further study about the pros and cons of the derivative.

“There will be more closedowns at small gold stores across the country,” Mr. Jitti commented—referring to the option. “We have seen almost 50 percent of small gold shops have been close so far.”

He forecasted that the gold prices will remain fluctuating according to the U.S. dollar and the domestic factors would have no substance impact to price change.

GT Wealth Management Co., Ltd.’s managing director Sathit Vannasilpin said TFEX’s move to reduce minimum purchase weight per gold futures contract would draw many more investors to the market.

He said, however, prices will be remaining influent by the offshore markets and the movement of the U.S. dollar.

TFEX’s managing director Gassara Manchusri said that the company is in a process of discussing the matter with the Gold Trader Association.

She said there is the middle-way solution for the problem. The company has worked hard at its best effort to educate the association’s members about gold futures trading option.

This includes sponsoring their educational business trips to get extensive experience in gold futures trading at the foreign markets.