Thai gold prices surged to a new high on September 20 following the weakening of the Thai Baht, which hit its lowest point in the past 10 months.
Gold traders are closely watching whether the prices will continue to decline or remain stable, depending on the government’s efforts to build confidence and the direction of US Federal Reserve’s interest rate adjustments.
Mr. Jitti Tangsitpakdi, President of the Gold Traders Association, stated that a significant influx of gold sellers was seen on Wednesday. In the morning session, gold prices rose three times, increasing by a total of 250 baht. The price of gold reached a record high of 33,550 baht per baht weight. This remarkable increase is attributed to the weakness of the Thai baht, which recently stood at 36.28 baht per US Dollar, marking an approximately 11% depreciation compared to the beginning of this year.
“The outlook for the final quarter of this year depends on the Thai baht and the global gold market.
International investors are closely eyeing investment opportunities in Thailand. If they are confident that the capital market remains stable, it could strengthen the baht. It ultimately relies on how the government instills confidence. As for the global gold market, all eyes are now on the United States Federal Reserve. If interest rates do not rise this year, gold prices may range between $1,945 and $1,975 per ounce,” he explained.
As of 11:34 AM, the buying price of a gold bar was 32,950.00 baht per baht weight, while the selling price was 33,050.00 baht per baht weight. Meanwhile, the buying price of gold ornaments was 32,351.44 baht per baht weight, with a selling price of 33,550.00 baht per baht weight. (TNA)
