Bangkok: The price of gold bars in Thailand reached 71,000 baht this morning, marking a significant high for the precious metal in the country.
According to Thai News Agency, the surge in prices is closely linked to global market trends, despite the Thai baht strengthening to below 31 baht per US dollar. Investors are increasingly turning to gold as a safe-haven asset in light of escalating geopolitical tensions and an intensifying trade war between the United States and Europe.
The Gold Traders Association announced at 11:03 AM that Thai gold prices have been adjusted 15 times, reaching a new high. Gold bars were selling at 71,150 baht per baht weight, while gold ornaments were priced at 71,950 baht. This follows a new high of US$4,844.50 per ounce in the gold spot price, though the strengthening Thai baht has tempered the increase. Without the stronger baht, local gold prices would have likely climbed even higher.
Kasikorn Research Center noted that the Thai baht was trading at approximately 30.93-30.95 baht per US dollar this morning, after strengthening past the 31.00 level to its strongest point in nearly five years. The baht's appreciation is partly due to rising global gold prices, while the US dollar suffers from selling pressure amid US-Europe tensions over the Greenland issue and signs of an escalating trade war.
Shinning Gold Bullion analysts report that global financial market instability is driving gold prices upward. A sell-off in Japanese government bonds caused disruption in Tokyo, while US President Donald Trump's tariff threats on European goods over the Greenland issue have added to concerns. The Greenlandic Prime Minister's warning of potential military conflict further increased demand for gold as a safe-haven asset.
However, investors should be cautious of potential shifts in trade war dynamics, which could impact gold prices. If tensions between the US and Europe escalate, President Trump may de-escalate the US-China trade issue, potentially affecting gold's value in the short or long term. Analysts recommend buying on dips at specific world gold prices and implementing risk management strategies.
Thai gold prices have rebounded strongly, following the Gold Spot trend. While the upward trajectory is clear, rapid price increases pose high risks for aggressive buyers. Analysts suggest preparing multiple averaging positions to manage portfolio risk and advise waiting for price pullbacks before acquiring more gold. The resistance and support levels for Thai gold prices are also outlined for strategic trading.
City Index and FOREX.com analysts observe that the political risk hedge and US dollar weakening have driven gold's appeal. They forecast the next price range for gold between $4,800 and $4,900, with a long-term psychological target of $5,000.