Bangkok: Thai gold prices have reached a new peak following a surge in global gold prices, which have climbed above $4,000 per ounce.
According to Thai News Agency, this increase is driven by expectations of an interest rate cut by the US Federal Reserve and the mounting demand for gold by central banks around the world.
The Gold Traders Association announced that Thai gold prices opened with a significant rise of 550 baht per baht weight. Currently, gold ornaments are being sold at 62,300 baht per baht weight, while gold bars are priced at 61,500 baht per baht weight. This pricing is based on a global spot price of $4,001 per ounce, with the exchange rate standing at 32.50 baht per US dollar.
Goldman Sachs has revised its gold price forecast upward, now predicting a price of $4,900 per ounce by December 2026, an increase from the previous forecast of $4,300 per ounce. The bank cites strong inflows into gold exchange-traded funds (ETFs) and the persistent trend of central banks purchasing gold as key factors. Notably, the People's Bank of China has added gold to its reserves for the 11th consecutive month as of September.
In a historic move, gold futures on the New York Mercantile Exchange closed above the $4,000 mark for the first time on Tuesday. The December gold futures contract on the Commodity Exchange (COMEX) increased by $28.1, or 0.71%, closing at $4,004.4 an ounce. Since the start of the year, gold prices have witnessed a remarkable surge of 51%.
The anticipation of a potential interest rate cut by the US Federal Reserve at this month's meeting, alongside a weakening US dollar, has further bolstered gold prices. Additionally, the demand for safe-haven assets remains strong amid ongoing economic uncertainties in the US, exacerbated by government shutdowns.