Bangkok: Gold prices are soaring in Thailand as the cost of gold bars has reached a new high. This morning, Thai gold prices escalated, with gold bars priced at 60,100 baht per baht weight, meaning that 100,000 baht can now purchase less than 2 baht of gold.
According to Thai News Agency, the Gold Traders Association reported that as of 11:00 a.m., the price of Thai gold had increased a total of ten times, aligning with world gold price trends and a weakening baht. Gold bars are currently selling for 59,300 baht per baht of gold, while gold ornaments are priced at 60,100 baht per baht of gold. This is based on an exchange rate of 32.39 baht per dollar, with spot gold at 3,865.50 dollars per ounce.
Gold futures on the New York Mercantile Exchange closed at a record high on Monday, with December COMEX delivery rising by $46.20, or 1.21%, to $3,855.20 an ounce. This increase has been fueled by expectations that the Federal Reserve might cut interest rates in October, concerns over a potential federal government shutdown, and geopolitical tensions from the Ukraine-Russia conflict, prompting investors to seek gold as a safe-haven asset.
Mr. Nattawut Wongyaorak, Director of Research at Globlex Securities, has assessed that gold prices may continue to fluctuate due to trade war uncertainties and geopolitical tensions. These factors have led investors to hold onto gold as a safe asset. The research team has estimated the price range for gold to be between US$3,760-3,850 per ounce and recommends “buying on dips.”
Despite the upward trajectory in gold prices, negative factors impacting gold investment persist, such as India’s plan to increase oil imports from the United States to address trade imbalances. Indian Commerce Minister Piyush Goyal stated that India aims to boost oil and natural gas imports from the United States to reduce trade imbalances and facilitate future trade agreement negotiations.
At the Kasikorn Research Center, the baht traded between 32.24 and 32.26 baht per dollar this morning, compared to yesterday’s closing price of 32.22 baht per dollar. The baht’s movement remained relatively stable despite global gold prices reaching new highs amid weak dollar sentiment, partly due to Federal Reserve officials’ openness to interest rate cuts and concerns over a potential US government shutdown.
The baht’s movement is initially estimated at 32.10-32.35 baht per dollar today. Key factors to watch include Thailand’s August current account balance, trends in foreign fund flows, global gold prices, China’s September PMI, and US economic indicators, such as August job openings, labor turnover, and the September Consumer Confidence Index.