Bangkok: Thai gold prices have surged to a new record high, with gold bars now selling at 55,950 baht per baht weight. This rise aligns with the ongoing increase in global gold market prices.
According to Thai News Agency, the Gold Traders Association reported that as of 4:00 PM, the price of gold has been adjusted for the 10th time, reaching an all-time high, which is 550 baht higher than the price observed on Saturday, September 20th. Currently, gold ornaments are selling for 56,750 baht per baht of gold. The spot gold price stands at 3,720 US dollars per ounce, with the exchange rate at 31.80 baht per dollar.
An analysis conducted by Hua Seng Heng Gold Futures Co., Ltd. indicates that the upward movement of world gold prices is influenced by the United States facing a potential partial government shutdown at the end of September. The Republican Party in the House of Representatives has proposed a bill to extend the government's budget until November 21, but the Democrats have rejected it, seeking cuts in the healthcare budget. The deadline for this negotiation is September 29-30. Meanwhile, the SPDR Gold Trust has purchased 18.90 million gold, totaling 994.56 tons net.
The dollar index (DXY) has strengthened over three consecutive days, reaching 97.64 units from 96.61 units, while US bond yields have risen to 4.13% from 4.02%. The market is keenly observing Supreme Court Chief Justice John Roberts, who has requested further clarification from Federal Reserve Governor Lisa Cook by September 25th in relation to President Donald Trump's attempt to remove her from office.
Gold prices are currently trending sideways within the support and resistance levels of $3,660 and $3,700, respectively. It is anticipated that global gold prices may fluctuate within this range. However, if prices drop below the next support level of $3,650, a downtrend may ensue.
In the domestic market, gold prices are on the rise in tandem with global prices, while the baht is strengthening. It is advised to buy and accumulate gold at the support level of 55,150 baht and sell to make a profit if prices test the resistance level at 55,550 baht. Conversely, if prices fall below the support level of 55,050 baht, it is recommended to sell to mitigate losses.
Kasikorn Research Center notes that the baht is moving within a range after a significant appreciation in the previous period, as it awaits new stimulus factors. Despite the rise in gold prices, the dollar continues to gain strength following the Federal Reserve's indication of a slowdown in interest rate cuts. Additionally, the baht may experience further weakening pressure from foreign net selling of Thai bonds.