BANGKOK, Thailand – The Gold Traders Association of Thailand reported that gold prices reached a new record high in the morning (March 28), with gold jewelries hitting 50,150 baht per baht and gold bars priced at 49,350 baht. This marks a significant increase of 600 baht per baht, driven by global factors influencing the gold market. The rise in gold prices comes as Asian spot gold surged to $3,077.50 per ounce, alongside the Thai baht trading at 33.89 baht per US dollar.
The sharp increase in gold prices reflects the ongoing uncertainty in global markets. According to Hua Seng Heng, a major gold trader in Thailand, the price of gold hit a new high following the US President Donald Trump’s recent announcement of tariffs on imported vehicles. Trump’s decision to impose a 25% tariff on automobiles, up from the previous 2.5%, has created increased volatility in global trade, leading investors to flock to gold as a safe-haven asset. This development has caused gold to break its 17-day price peak, which is seen as a critical technical level, with spot gold trading above $3,060 per ounce.
Hua Seng Heng has also highlighted the potential for gold prices to continue rising, with resistance levels set between $3,070 and $3,100 per ounce. However, they also caution that if gold prices fall below $3,048 per ounce, the upward momentum could slow and prices may experience a deeper correction.
On the global market, the April gold futures contract on the COMEX (Commodity Exchange) saw an increase of 38.50 dollars, or 1.27%, closing at $3,061 per ounce. The rise was driven by growing concerns over trade tensions and the global stock market downturn. The US announcement on March 26 to increase tariffs on car imports sparked fears of an escalating trade war, which also pushed gold prices to new highs, reaching $3,071.30 per ounce during the day.
Goldman Sachs has revised its forecast for gold prices, raising its projection to $3,300 per ounce by the end of 2025, up from its previous estimate of $3,100. The bank attributes the price increase to stronger-than-expected demand for gold from central banks and the significant inflow of capital into gold ETFs.
Meanwhile, the Kasikorn Research Center reported that the Thai baht appreciated to a level of 33.87-33.89 baht per dollar this morning, from the previous close of 33.93. The baht’s strength aligns with the rise in gold prices, reflecting market reactions to global gold price trends and the escalating US-China trade tensions. However, the baht’s appreciation remains limited as markets await key economic data, including the US Consumer Price Index (CPI) and the upcoming US tariff measures targeting countries with large trade surpluses with the US.
Looking ahead, the forecasted trading range for the Thai baht today is between 33.75 and 34.00 baht per dollar, with important factors to watch including the direction of gold prices, foreign fund flows, and developments in the US trade policy, particularly with the US’s trade war with major trading partners. (TNA)
