Bangkok: Gold prices in Thailand have reached unprecedented levels as the baht continues to show signs of weakening. This morning, gold was selling for 58,900 baht per baht weight, marking a significant increase in the domestic market, driven by global trends and currency fluctuations.
According to Thai News Agency, the Gold Traders Association reported that gold prices had risen nine times consecutively up until 11:56 a.m., setting a new high. Gold bars were priced at 58,100 baht per baht weight, while ornaments reached 58,900 baht per baht weight. This surge aligns with a weakening baht, which currently stands at an exchange rate of 32.24 baht per US dollar, and a Gold SPOT price of 3,808 US dollars per ounce.
Hua Seng Heng Gold Futures Co., Ltd. pointed out that global gold prices have been on the rise due to the dollar index (DXY) experiencing a downward adjustment after two days of gains. The 10-year US Treasury yield has remained stable, and recent economic announcements from the US have influenced market sentiments. The US Department of Commerce reported a contraction in the monthly core PCE index, although the annual figure remained unchanged. Concerns are also growing about the potential for a US government shutdown, which could delay key economic data releases, further impacting market dynamics.
In terms of trading strategy, global gold is trending sideways upwards. Analysts recommend accumulating at a support level of $3,760 and selling when prices test the resistance level of $3,790. A fall below $3,750 should prompt sales to cut losses. Domestically, with the baht moving sideways, buying is advised at the support level of 57,450 baht, with sales recommended if prices test the resistance level of 57,750 baht. A drop below 57,350 baht suggests selling to mitigate losses.
The baht’s trading range this morning was approximately 32.22-32.24 baht per dollar, slightly fluctuating from Friday’s closing. The Kasikorn Research Center noted this trend is consistent with other Asian currencies and aligns with global gold prices reaching new highs. The weakening dollar, influenced by US inflation data and potential Fed interest rate cuts, adds to the complexity of the market. Concerns over a possible US government shutdown are also affecting currency movements.
Mr. Poon Panichpibul, Market Strategist at Krungthai GLOBAL MARKETS, shared insights into the baht’s depreciating momentum, highlighting the potential for movement in both directions due to shifting market views on Fed interest rates. Despite downward pressure, the baht’s depreciation may remain moderate short-term, contingent on gold price rises and foreign investor activity. Market participants, including exporters, are poised to sell dollars if the baht tests resistance levels. A broader range of exchange rate hedging tools is recommended for market players.
The Global Markets Group of Bank of Ayudhya Public Company Limited (Krungsri) forecasts the baht trading within a range of 31.85-32.50 baht/dollar this week, as attention shifts to key US economic data. Current market prices predict further Fed interest rate cuts, despite Krungsri’s estimation of additional cuts this year, influenced by AI-driven economic growth and potential BOJ interest rate adjustments.