Gold prices hit record high in Thailand, predicted to climb further
Gold prices in Thailand have reached a historic peak, with projections indicating a possible increase to 38,000 baht per baht weight within the year. This surge is largely attributed to the continued global increase in gold prices, which are nearing a two-month high of over US$2,080 per ounce, according to the Gold Traders Association (GTA).
The price of gold bars in Thailand witnessed two modifications, each by 50 baht, before midday yesterday. This adjustment resulted in a record high of 35,300 baht per baht-weight, notwithstanding the recent strength of the Thai currency, explained GTA president Jitti Tangsitpakdi.
Gold prices escalated by 400 baht per baht-weight on Friday alone, reaching 35,200 baht, in correlation with global prices which were around US$2,088.19. Over the weekend, gold futures closed at a historic US$2,095.70 an ounce, stimulated by the weakening US economy and reduced treasury yields.
The spot gold price showed a minor decline yesterday morning but rebounded to around US$2,085 per ounce in the afternoon. A depreciating dollar renders gold cheaper for those dealing in other currencies, while lower bond yields decrease the cost of holding non-yielding bullion, said Jitti.
“If the baht hadn’t appreciated recently to about 35.80 baht to the dollar now, domestic gold prices would be higher than they are now.”
“We are now expecting the resistance level of gold prices of 38,000 baht, highly likely after the Fed starts cutting the rates in June this year as the market now widely expects.”
Jitti also shared that the GTA has maintained its forecast that global prices would peak at US$2,100 this year.
Several analysts concur, citing a lower-than-expected ISM Manufacturing Purchasing Managers’ Index in the US which further weakens the dollar index. Globex Securities’ research unit predicts that global gold prices will fluctuate between US$2,070 and US$2,090 per ounce in the short term.
MTS Gold, a trader, anticipates gold to move within the range of 35,150 to 35,450 baht per baht-weight, based on global prices of US$2,090 per ounce for resistance and US$2,070 for support. Hua Seng Heng, another gold trader, predicts the global price will reach US$2,100 per ounce for resistance and US$2,088 for support, reported Bangkok Post.
