Thai gold prices hit a record high, with gold bars reaching 42,800 baht. The president of the Gold Traders Association believes it could reach 50,000 baht.
The Gold Traders Association reported that the price of gold this morning until 10.26 am, the price was adjusted twice, increasing by a total of 250 baht/baht of gold. Selling price of gold bars is 42,800 baht per baht. Selling price of gold ornaments is 43,300 baht per baht, based on the spot price of gold of 2,730 US dollars/ounce, the baht is 33.17 baht/dollar. The price of US gold closed on October 18. The gold contract on the COMEX (Commodity Exchange) for delivery in December increased by 22.50 dollars or 0.83%, closing at 2,730.00 dollars/ounce, a new high price due to the increasing tension in the Middle East and uncertainty about the US election. The market estimates that if ‘Donald Trump’ wins, it will cause concern among investors around the world, so they park some of their money in gold as a safe haven. The market also expects a relaxed mone
tary policy. Central banks around the world will continue to reduce interest rates until next year, showing that gold will become more attractive because gold does not provide returns in the form of interest.
Hua Seng Heng Gold Futures Co., Ltd. stated that the world gold price has continued to rise sharply, reaching an all-time high, supported by the situation in the Middle East, with the war between Israel and Hamas and Hezbollah intensifying, and the uncertainty of the US presidential election, as well as China’s announcement of an economic stimulus plan. Meanwhile, the SPDR Fund bought 10.65 tons of gold, an increase from the previous week, while the gold ETF returned to buy gold continuously for the 5th month. In September, the gold ETF had a capital inflow of 1.4 billion dollars, or a net purchase of 18.4 tons, resulting in an increase in accumulated holdings to 3,200 tons. The Thai gold price tends to increase further in line with the world gold price, which has adjusted to an all-time high, and the b
enefit of the weak baht.
Mr. Jitti Tangsitpakdee, President of the Gold Traders Association, revealed that the price of gold, in addition to the world market price, is also affected by the value of the baht, which changes by 10 satang, affecting the price of gold by 120 baht, which the private sector does not want to see the baht strengthen too much. If the price of gold exceeds 2,700 US dollars per ounce, the price of Thai gold should reach 45,000 baht per baht. However, at this time, many parties still believe that if the world price of gold increases further, Thai gold should reach 50,000 baht per baht. However, in terms of sales, the sales volume has not increased because domestic purchasing power is considered to be in a worse state, making the worst record. Especially with the flooding problem, people have used the money to repair their homes, causing people to reduce their purchase of gold for savings.
The baht moved to around 33.14-33.16 baht per dollar this morning (10.27 a.m.) compared to the clos
ing price of 33.16 baht per dollar last week. Ms. Kanchana Chokpaisansin, Research Manager, Kasikorn Research Center, said that the baht benefited from the increase in the price of gold on the world market, while the increase in the dollar slowed down somewhat in line with the US bond yield after the US housing starts figures for September came out lower than the market expected.
For the baht’s movement framework today, the initial assessment is 33.00-33.25 baht per dollar, while important factors to monitor include the direction of foreign capital and regional currencies, the announcement of the lending rate for prime customers (LPR) by the People’s Bank of China, which recently announced a 0.25% reduction in the 1-year LPR to 3.1% from 3.35% and a 0.25% reduction in the 5-year LPR to 3.6% from 3.85%.
Source: Thai News Agency
