BANGKOK, Thailand – Jitti Tangsitpakdee, President of the Gold Traders Association of Thailand, revealed that global gold prices have surpassed $2,500 per ounce on August 21. However, due to the strengthening of the Thai baht against the US dollar, domestic gold prices are moving in the opposite direction from the global market. This morning, Thailand’s gold market opened with a drop of 150 baht per baht-weight of gold, and prices have been fluctuating throughout the day.
Looking ahead, global gold prices are expected to rise further, driven by investor expectations that the US Federal Reserve will lower interest rates in its September meeting. This could push the Gold Spot price to $2,600 per ounce by the end of the year, though it is unlikely to reach $3,000 per ounce.
“I personally believe global gold prices may hit $2,600 per ounce this year, which could drive Thai gold prices to new highs of over 42,000 baht per baht-weight of gold. However, due to the strong baht, domestic gold prices have not surged in line with the global market,” said Jitti. He noted that in the past, Thai gold prices once soared to 42,150 baht per baht-weight, even when global gold prices were below $2,000 per ounce. Currently, despite global gold prices exceeding $2,500 per ounce, domestic prices remain below 41,000 baht. This discrepancy is primarily due to the strong baht, which is currently valued at around 34 baht per US dollar and may strengthen further.
Jitti explained that every 1-baht appreciation of the baht against the dollar reduces Thai gold prices by approximately 1,000 baht per baht-weight of gold. Despite this, he believes the current situation presents a good opportunity for small-scale investors to make short-term profits from gold trading. However, he cautioned that investors should closely monitor exchange rates, as a weakening baht could lead to a rise in domestic gold prices. (TNA)
