BANGKOK, Thailand – Thai gold prices have reached a new record, with gold bullion now selling at Baht 42,800 per baht weight, October 21. According to the Gold Traders Association, gold prices increased twice in the morning, up by Baht 250 per baht weight. Gold ornaments are being sold at Baht 43,300 per baht weight, based on the spot gold price of USD 2,730 per ounce, and the Thai baht standing at 33.17 baht per U.S. dollar.
Gold futures in the U.S. market closed on October 18, with the December COMEX gold contract rising by USD 22.50, or 0.83%, settling at USD 2,730.00 per ounce. This new high was driven by growing tensions in the Middle East and uncertainties around the U.S. elections. Investors are seeking safe havens like gold amid fears of global instability, particularly if Donald Trump wins the U.S. election. Additionally, expectations of continued monetary easing and interest rate cuts by central banks worldwide into next year have further bolstered gold’s appeal.
Hua Seng Heng Gold Futures Co. Ltd. noted that global gold prices continue to surge, driven by the ongoing conflict between Israel, Hamas, and Hezbollah, as well as U.S. election uncertainties and China’s economic stimulus measures. SPDR Gold Trust, the largest gold-backed ETF, increased its holdings by 10.65 tons from the previous week. Meanwhile, global gold ETFs have been steadily buying gold for five consecutive months, with net inflows of USD 1.4 billion in September, equating to 18.4 tons, bringing their total holdings to 3,200 tons.
Chitti Tangsitpakdee, President of the Gold Traders Association, explained that in addition to global gold prices, the fluctuating value of the Thai baht impacts gold prices domestically, with a 10-satang change in the baht affecting gold prices by Baht 120. If gold exceeds USD 2,700 per ounce, domestic prices could rise to Baht 45,000 per baht weight. Some experts predict that if global prices continue to climb, Thai gold may reach Baht 50,000 per baht weight. However, despite the rising prices, local sales have not increased due to weak domestic demand, worsened by recent flooding, which has led people to prioritize home repairs over saving by purchasing gold.
This morning, the baht traded at around 33.14-33.16 baht per U.S. dollar, compared to last week’s closing rate of 33.16 baht per dollar. Kanyachna Chokpaisansin, a research executive at Kasikorn Research Center, noted that the baht gained support from rising global gold prices, while the U.S. dollar’s appreciation slowed, aligning with a dip in U.S. bond yields after U.S. housing starts in September fell short of expectations.
The baht’s expected trading range today is between 33.00-33.25 baht per dollar. Key factors to watch include foreign capital flows and regional currencies, as well as the People’s Bank of China’s recent decision to cut its Loan Prime Rate (LPR) for one-year loans by 0.25% to 3.1% and its five-year LPR by 0.25% to 3.6%. (TNA)
