Bangkok: The price of gold in Thailand fell by 350 baht this morning, following a significant drop in global market prices. The decline comes as the baht continues to weaken, reflecting broader economic trends influenced by rising US bond yields and dollar appreciation.
According to Thai News Agency, the Gold Traders Association reported an opening price for gold bars at 43,500 baht per baht of gold, with gold ornaments being bought at 42,720.88 baht per baht of gold and sold at 44,100 baht per baht of gold. These figures represent a decrease of 300 baht from the previous day’s closing price. The Thai gold price was adjusted twice by 9:48 a.m., falling an additional 50 baht, in alignment with the SPOT gold price of $2,723 per ounce.
The decline in Thai gold prices mirrors the global market trend, where the December gold contract on the Commodity Exchange (COMEX) dropped by $30.40, or 1.10%, closing at $2,729.40 per ounce. This decrease is attributed to the rise in the 10-year US government bond yield, which
reached 4.255%, the highest in three months. Concurrently, the dollar index rose by 0.34% to 104.431, making dollar-priced gold less attractive to investors using other currencies. Higher US bond yields also increase the opportunity cost of holding gold, which does not yield interest.
Despite the current decline, analysts from major US banks, including Goldman Sachs, JPMorgan, and Citigroup, remain optimistic about gold’s future. They predict record highs for gold prices until 2025, driven by investments in gold ETFs, geopolitical tensions in the Middle East, and uncertainties surrounding the US presidential election. Citigroup has adjusted its three-month gold price forecast to $2,800 per ounce, with expectations of reaching $3,000 per ounce within the next 6-12 months.
The Kasikorn Research Center noted that the baht traded between 33.77-33.79 baht per dollar this morning, compared to a closing rate of 33.50 baht per dollar on Tuesday. This movement aligns with other Asian currencies and is impacted by fo
reign investors’ selling of Thai bonds. The baht is projected to fluctuate between 33.60-33.90 baht per dollar today, influenced by sustained US bond yield increases and gradual Federal Reserve interest rate adjustments.