Golden opportunity: Prices to sparkle amid global turmoil, US policy

Gold prices are primed for a glittering rise this week, says the Gold Research Centre (GRC). Driven by a trio of global factors, the Middle East turmoil, cues from the Bank of Japan’s (BoJ) policy moves, and faltering US economic signals—this precious metal is sparking keen market interest.

While most experts brace for stable or dipping gold rates, the GRC Gold Survey bucks the trend with predictions of domestic price hikes. Last week, the Gold Traders Association reported 96.5% of gold bars in the local market swinging between 42,750 and 44,000 baht per baht weight (around 15.1 grams), closing with a glistening 43,700 baht, a 1,150 baht leap from the week before.

Eyes are peeled this week on the Middle East melodrama. Post-visit by US Secretary of State Antony Blinken, there’s hope for easing tensions as he pressed Israel to dial back on Iran hostilities and hint at peace talks with Hamas and Hezbollah, especially with the US elections looming large.

Japan watchers will also keep their ears to the ground as BoJ’s meeting unfurls. Despite the yen’s slip to a near-three-month low, Governor Kazuo Ueda signalled no rush to tweak interest rates, drawing out the monetary policy debate further.

Stateside, a slew of US economic figures is set to hit the headlines, including data on private employment, non-farm payrolls, and October’s unemployment stats. These could tip the scales on economic prospects.

Local market guru Hua Seng Heng flagged an all-time high for gold costs last week, fuelled by the Middle East’s rising tensions. Meanwhile, geopolitical fireworks flared over the weekend as Israel lobbed missiles at Iran; fortunately, Iran later assured the safety of its nuclear facilities.

Adding to the mix, BRICS nations (Brazil, Russia, India, China, and South Africa) are crafting a novel payment system, aiming to slice their reliance on Uncle Sam’s dollar. Notably, the SPDR Gold Trust, the globe’s biggest gold fund, snapped up another 1.15 tonnes of gold.

GRC suggests clinging to gold reserves to maximise gains, buoyed by global surges and baht weakening in tandem with regional currencies battling a bullish dollar.

As trading kicked off today, domestic prices held steady, with gold ornaments tagged at 44,100 baht per baht weight and gold bars nestled at 43,700 baht, a tick under last week’s 44,000 baht zenith. Concurrently, the baht traded around 33.81 to the US dollar.

Overseas, spot market gold is pegged at around US$2,732, a dip from last week’s US$2,749 apex. Hua Seng Heng foresees global prices anchoring support at US$2,720 and catching resistance at US$2,758 this week.

Domestically, look for 96.5% gold bars to find their footing at 43,450 baht with a resistance point at 43,900 baht