Bangkok: Thai gold prices have reached unprecedented levels, with gold bars now selling at 42,800 baht per baht, and further increases anticipated amid global economic and political uncertainties.
According to Thai News Agency, the Gold Traders Association reported significant adjustments in gold prices this morning until 10:26 am, noting a total increase of 250 baht per baht of gold. The selling prices for gold ornaments also rose to 43,300 baht per baht. These changes are influenced by the current spot price of gold, which stands at 2,730 US dollars per ounce, and a baht valuation of 33.17 per US dollar.
The president of the Gold Traders Association, Mr. Jitti Tangsitpakdee, expressed concerns that the price of gold is heavily influenced not only by the global market but also by the local currency’s valuation. He mentioned that a minor change in the baht’s value by 10 satang could alter gold prices by as much as 120 baht. With this volatility, there is a strong belief within the trading community that if
the global gold prices continue their upward trajectory, exceeding 2,700 US dollars per ounce, Thai gold prices could soon hit 45,000 baht per baht and potentially even 50,000 baht per baht.
The report further highlighted that the recent spikes in gold prices are a result of several factors including increased tensions in the Middle East, particularly the intensifying conflict between Israel, Hamas, and Hezbollah, and the uncertainty surrounding the US presidential elections. Additionally, China’s recent announcement of an economic stimulus plan has contributed to these fluctuations.
Hua Seng Heng Gold Futures Co., Ltd. also noted that the world gold price has been on a sharp rise, reaching new highs supported by these geopolitical tensions and economic policies. The SPDR Fund’s recent acquisition of 10.65 tons of gold, an increase from the previous week, alongside continuous purchases by the gold ETF for the fifth month in a row, which saw a capital inflow of 1.4 billion dollars in September, have played a
crucial role in the price surge.
In terms of local impact, the rising gold prices have not translated into increased sales in Thailand. The country’s current economic challenges, including severe flooding, have led to reduced domestic purchasing power as many are prioritizing home repairs over gold investment.
In related financial news, the baht today showed slight fluctuations, trading between 33.14 and 33.16 baht per dollar as of 10:27 am, with the Kasikorn Research Center forecasting a potential range of 33.00 to 33.25 baht per dollar for the day. External factors like foreign capital flows, regional currency trends, and adjustments in China’s lending rates are expected to influence the baht’s trajectory in the short term.