Bangkok: Gold prices continue to rise, reaching unprecedented levels. Gold bars are currently priced at 64,250 baht, and gold jewelry has reached 65,050 baht, with expectations that prices may surge to 75,000 baht. The global gold price is projected to climb to $4,500 per ounce, with no apparent factors to curb this increase.
According to Thai News Agency, the Gold Traders Association has announced a significant increase in gold prices, setting a new record for domestic gold prices. The market opened with an immediate rise of 1,150 baht. Gold bars are being bought at 63,800 baht per baht weight and sold at 63,900 baht. Gold ornaments are being purchased at 62,519.84 baht per baht weight and sold at 64,700 baht. Meanwhile, the global gold spot price has reached a new high of US$4,142 per ounce.
As of late morning, the domestic gold price has continued to break records, adjusting 10 times and increasing by a total of 1,550 baht. Gold bars are now bought at 64,150 baht per baht weight and sold at 64,250 baht. Gold ornaments are being bought at 62,868.52 baht per baht weight and sold at 65,050 baht. The global gold spot price has climbed to US$4,169 per ounce.
The bustling atmosphere at gold shops in the Yaowarat area reflects the ongoing demand, with a steady stream of people engaged in buying and selling activities. The majority are purchasing gold, driven by the continuous rise in gold prices. Some shops have started to limit purchases during specific hours.
Worachai Tangsitpakdee, Deputy Secretary-General of the Gold Traders Association, explained that the rise in gold prices is attributed to the demand for gold as a safe-haven asset amidst concerns over the US-China trade tensions. This situation has been exacerbated by US President Donald Trump's threats to retaliate against China's restrictions on rare earth exports. Additionally, there are expectations of further interest rate cuts by the US Federal Reserve, following a recent cut in September, alongside ongoing geopolitical conflicts.
The global gold price is forecasted to reach US$4,300-4,500 per ounce, potentially elevating the domestic gold price to 75,000 baht per baht of gold. Although the surge in prices invites the possibility of a decline, no current factors suggest a downturn.
In the domestic market, gold purchases are predominantly in the form of gold bars, mainly for investment, with some transactions aimed at short-term profits. Recent holidays led to factory closures, causing delays in gold delivery. However, normal production has resumed, and the situation is expected to stabilize within 10 days, allowing for regular gold delivery.