Bangkok: Thai stocks rose, the baht weakened, and gold prices dropped following news that a US court suspended President Donald Trump’s retaliatory tariffs. Krungsri Securities anticipates the Stock Exchange of Thailand (SET) will bounce back above 1,200-1,210 points within 1-3 days.
According to Thai News Agency, the baht hit around 32.84-32.86 baht per dollar this morning, compared to the previous day’s close of 32.62 baht per dollar. Kasikorn Research Center noted the baht’s depreciation aligned with other Asian currencies amid a strengthening dollar. This shift followed the US Court of International Trade’s decision to suspend Trump’s countervailing tariffs, which were deemed an overreach of power. The White House plans to appeal and may escalate the case to the Supreme Court. Meanwhile, markets view this development as a sign that Trump might reconsider imposing the highest tariffs he had threatened.
Furthermore, the baht’s weakening coincided with a decline in global gold prices and signaled an outflow of foreign investors from the Thai bond market. The Gold Traders Association reported a 550 baht decrease in the domestic gold price this morning, with gold bars buying at 50,650 baht per baht of gold and selling at 50,750 baht.
Hua Seng Heng Gold Futures Company Limited suggested that the drop in global gold prices was due to short-term selling pressure for profit-making, recommending speculative buying. The domestic gold price fell in line with global trends, though the weak baht provided some support. The support level is expected at 50,400 and 50,300 baht, with resistance at 50,900 and 51,000 baht.
Spot gold prices reached their lowest level in more than a week, falling 0.82% to $3,261.02 an ounce, while gold futures prices dropped 0.76% to $3,261.48 an ounce amid uncertainties over Trump’s tariffs. Thai stocks mirrored positive trends in Asian markets, initially rising by 17 points and later settling at 1,172 points. Krungsri Securities’ Assistant Managing Director, Korapat Vorachet, stated that the court’s decision marked a turning point for investments in emerging markets and could reposition Thai stocks, expecting the SET to breach 1,200-1,210 points soon.
Globally, the suspension led to a “risk-on” environment, with money moving from safe havens like gold and short-term bonds to US stocks, causing the dollar to strengthen. While Asian currencies weakened against the dollar in the short term, they remain strong in the medium to long term. Krungsri Securities anticipates a bureaucratic process before any new tariffs might be imposed, offering a positive investment window in Asia, particularly in the Thai stock market. If the court issues a ‘Stay of Judgment’ or if an investigation under Section 301 begins, investors should prepare for strategic adjustments focusing on defensive stocks.