Bangkok: Thai gold prices showed resilience despite a significant drop in global gold prices, as announced by the Gold Traders Association. The initial price decrease followed global market trends but was offset by a rise in the second round, resulting in the selling price of gold bars being set at 72,700 baht per baht and gold ornaments at 73,500 baht, marking a decrease of only 250 baht from the previous day.
According to Thai News Agency, the global gold market witnessed a sharp decline, with gold futures on the COMEX for April delivery falling $140.40, or 2.78%, to close at $4,905.90 per ounce on Tuesday. This decline was attributed to progress in negotiations between the United States and Iran, which diminished investor demand for safe-haven assets. Additionally, a stronger dollar contributed to the sell-off in the gold market.
Iranian Foreign Minister Abbas Araghchi noted that the second round of indirect talks between Iran and the United States, held in Geneva, was constructive, reaching an agreement on general principles that could be incorporated into a future agreement. Meanwhile, trilateral talks between the United States, Russia, and Ukraine also concluded in Geneva, with markets closely monitoring the potential for a ceasefire agreement.
Kasikorn Research Center reported that the Thai baht was trading between 31.26-31.28 per US dollar this morning, compared to the previous day's closing level of 31.23. The baht's weakening followed the decline in global gold prices, while the US dollar strengthened due to rising US bond yields and Federal Reserve officials' statements supporting the maintenance of current interest rates until US inflation hits the Fed's target.
For today's trading range, the baht is estimated to be between 31.20-31.40 per US dollar. Key factors to watch include domestic political developments, foreign fund flows, movements in Asian currencies and global gold prices, and US economic data such as housing starts, durable goods orders, and industrial production for December, along with the Federal Reserve meeting minutes from January 27-28.