BANGKOK, Thailand – Gold prices rose by $17.49, or 0.64%, to close at $2,713, driven by a weaker U.S. dollar and ongoing geopolitical uncertainties. The spot price of gold reached a high of $2,724 and a low of $2,690 during the trading session. In Thailand, gold bullion prices (96.5% purity) ranged between 44,050 and 44,300 THB.
Hua Seng Heng analysts reported that gold prices have increased for three consecutive days. This upward momentum is largely due to weaker-than-expected U.S. economic data, including a 0.4% rise in December retail sales, which fell short of market expectations, and a higher-than-anticipated weekly jobless claims figure of 217,000. Additionally, gold prices have been bolstered by heightened geopolitical tensions, particularly continued Israeli airstrikes on Gaza despite the announcement of a ceasefire agreement with Hamas. However, some downward pressure came from the SPDR gold fund reducing its holdings by 3.74 tons.
The market is also closely monitoring key U.S. economic indicators, including December building permits, housing starts, and industrial production, which are expected to show mixed results. Building permits are forecasted to decline to 1.46 million units from 1.49 million in November, while housing starts are anticipated to increase to 1.33 million units from 1.29 million. Industrial production is expected to rise by 0.3%, rebounding from a 0.1% decline in November.
Gold prices have successfully broken through the critical $2,700 resistance level, suggesting further upward potential. Analysts identify the next resistance range at $2,725–$2,730. However, technical indicators, such as the Modified Stochastic, show that gold is entering overbought territory, urging caution for buyers.
For investors, the recommendation is to wait for a price pullback to the $2,690–$2,700 range before making purchases, with a stop-loss set at $2,680. Gold bullion prices in Thailand are also approaching overbought levels. Traders are advised to consider short-term profit opportunities and wait for prices to dip to around 43,800 THB for more favorable entry points.
