Bangkok: Gold prices in Asia experienced a significant decline, with the GOLD SPOT range falling below $4,100, marking the lowest point in seven months. This fluctuation was observed this morning as gold spot prices dipped to US$4,060 per ounce. The Thai baht also showed signs of weakness, and Thai gold bars saw a decrease in value to 63,400 baht.
According to Thai News Agency, the Gold Traders Association reported a total of 15 adjustments to gold prices by 11:10 AM today. This led to a drop of 1,450 baht per baht weight compared to the previous day. The decline in gold prices comes amid a backdrop of global economic uncertainties, including concerns about a potential prolonged conflict between the United States and Iran, which could lead to increased oil prices and inflation. These factors are pressuring the Federal Reserve to consider raising interest rates this year.
Kasikorn Research Center has indicated that the Thai baht's weakness this morning saw it testing the 33.00 level before stabilizing between 32.92-32.94 baht per dollar. This depreciation is partly attributed to the decline in global gold prices and ongoing tensions in the Middle East, which are influencing market expectations regarding the Federal Reserve's potential interest rate hikes. The rise in global oil prices, exacerbated by Iran's decision to close the Strait of Hormuz again, is also affecting the sentiment around Asian currencies, including the Thai baht.
For today's trading range, the initial estimate is projected to be between 32.85 and 33.00 baht per US dollar. Market participants are advised to keep an eye on several key factors, including US inflation figures, foreign fund flows, developments in the Middle East, the outcomes of the European Central Bank meeting, and US economic indicators such as the May producer price index and weekly jobless claims.