Bangkok: The price of gold is nearing the 50,000 baht mark as domestic gold prices surged, reaching a new record high today in alignment with global market trends. Gold ornaments approached this significant threshold, while the baht weakened amidst the decline in gold prices.
According to Thai News Agency, the Gold Traders Association reported that the morning’s opening prices set a new record. Gold bars were sold at 48,250 baht per baht of gold, and gold ornaments were at 49,050 baht per baht of gold, marking an increase of 250 baht from the previous day. In the Asian market, gold moved at 3,032.50 US dollars per ounce, while the New York market’s gold contract closed at a record high on Tuesday. The COMEX market for April delivery increased by 34.70 dollars or 1.15%, closing at 3,040.80 dollars per ounce. Tensions in the Middle East and trade uncertainties driven by US President Donald Trump’s tariff measures have bolstered gold’s status as a safe asset. The Israeli army’s resumption of airstrikes on the Gaza Strip ended a 2-month ceasefire with Hamas, resulting in over 400 deaths and hundreds of injuries.
Furthermore, Trump has issued threats against the Houthis, demanding a cessation of attacks on merchant ships in the Red Sea and holding Iran accountable for any future Houthi attacks. Trump has also announced a 25% tariff on steel and aluminum imports into the US, effective from February, with reciprocal tariffs expected on April 2. Analysts at ANZ predict gold will reach $3,100 within three months, while UBS targets a gold price of $3,200 this year.
The Kasikorn Research Center noted the baht’s adjustment to around 33.60-33.62 baht per dollar this morning, compared to the previous day’s closing of 33.58 baht per dollar. The baht’s weakening follows a global gold price decline after reaching a record high. Additionally, positive US economic indicators, such as housing starts and industrial production figures, have slowed momentum ahead of the US Federal Reserve meeting results tonight.
For today’s baht movement, the initial assessment is 33.50-33.75 baht per dollar. Key factors to monitor include global gold price trends, foreign fund flow signals, US trade war developments, the outcomes of the BOJ meeting, and the Fed meeting results.