Bangkok: Gold prices are anticipated to conclude their recent downward trend, aligning with analysts' projections of global gold prices reaching between $6,000 and $6,400 per ounce, while Thai gold prices are expected to climb to 88,000 baht per baht weight.
According to Thai News Agency, MTS Gold has echoed these forecasts, noting the Gold Traders Association's decision to increase the buyback/sell spread for gold bars from 100 baht to 200 baht to mitigate price volatility.
The Gold Traders Association reported that as of 10:46 AM, gold prices have fluctuated 18 times. Gold bars are currently priced at 71,900 baht, and gold ornaments at 72,700 baht per baht. The spot price for gold stands at US$4,797 per ounce, with an exchange rate of US$31.48 per ounce. Prices saw an increase of 150 baht from the previous day's closing, with opening prices today up by 850 baht per baht, setting gold bars at 71,650 baht and ornaments at 72,450 baht.
Dr. Kritcharat Hiranyasiri, Chairman of MTS Gold Group, observed that domestic gold prices have rebounded in alignment with global trends. He anticipates that within three months, prices will stabilize, presenting a favorable opportunity for investors to purchase gold as a long-term savings asset. Dr. Kritcharat recommends buying at approximately $4,700 per ounce, equivalent to 70,000-71,000 baht per baht weight. He maintains that global gold prices will likely reach $6,000-$6,400 per ounce, with Thai gold prices hitting 88,000 baht per baht weight this year. Silver prices, noted for their volatility, have also recently declined but are expected to return to previous highs around 125,000 baht per kilogram.
Dr. Kritcharat also mentioned that the Gold Traders Association convened an urgent meeting to address significant price fluctuations, leading to the decision to widen the spread between buying and selling gold bars. This measure aims to curb excessive volatility, benefiting small gold shops by reducing risk. Additionally, MTS GOLD has cautioned against online scams, where fraudsters impersonate the company to deceive individuals into investing or selling gold at undervalued prices. The company emphasizes that legitimate transactions require bank transfers to the company's account only.
The recent decline in gold and silver prices was largely influenced by the announcement of President Trump's nomination of Kevin Warsh as the next Federal Reserve chairman, succeeding Jerome Powell. Warsh's reputation for stringent inflation control is expected to bolster the dollar, causing global gold prices to drop. On January 30th, the COMEX market experienced an over 11% drop, marking the largest single-day decline since 1983. Further pressure on prices came on Monday following CME Group's increased margin requirements for precious metals contracts.
Gold and silver prices have been notably volatile, with gold reaching over 80,000 baht on January 29th before plummeting to approximately 70,000 baht by February 2nd-a decrease of 10,300 baht per baht weight. The global gold spot price also fell by over $900 per ounce. Analysts suggest support levels at $4,540 and $4,370 if prices do not stabilize above $4,660. JPMorgan projects gold prices to rise to $6,300 per ounce by the end of 2026, driven by persistent demand from central banks and investors, who are expected to purchase 800 tons of gold by 2026 for reserve diversification.
Despite recent market volatility, JP Morgan maintains an optimistic outlook on gold prices, anticipating a continued upward trend in the medium term due to asset diversification preferences. Deutsche Bank has also upheld its forecast for gold prices at $6,000 per ounce by 2026, suggesting that investor interest in gold will persist through potential market corrections.