New york: Gold closed sharply lower after the Federal Reserve chairman signaled interest rate hikes to curb inflation. COMEX gold futures for December delivery fell $48.40, or 1.07%, to close at $4,481.50 per ounce. Investors expressed concern that the Federal Reserve might raise interest rates in September following comments by Fed Chair Kevin Warsh indicating a tighter monetary policy. Rising oil prices added to inflation worries, potentially prompting further Fed action.
According to Thai News Agency, gold prices in Thailand opened 50 baht higher, setting the selling price of gold ornaments at 68,310.96 baht and gold bars at 70,700.00 baht. However, prices fluctuated eight times, leading to a total decrease of 100 baht during the morning session.
The Thai baht remained unchanged at 33.17 baht per dollar from the previous day. Krungthai Global Markets, a subsidiary of Krungthai Bank, noted that the baht faces two-way risk in the short term, influenced by changing perceptions of the Federal Reserve's monetary policy outlook. This is contingent on developments in US economic data and the uncertain situation in the Middle East. Market participants are advised to utilize a more diverse hedging strategy, with the expected range for the baht today between 33.05 and 33.30 baht per dollar.