Bangkok: Gold prices are continuing on an upward trajectory, reaching a significant surge of 1,250 baht with potential projections to climb to $5,500 by the end of the year. This rise has been attributed to various geopolitical and economic factors, including tensions in the Middle East and inflationary pressures in the United States.
According to Thai News Agency, today saw a sharp increase in gold prices at the opening, as announced by the Gold Traders Association. Throughout the morning, prices fluctuated multiple times, with the selling price of gold ornaments nearing 70,000 baht. At 10:19 AM, the selling price was recorded at 69,850 baht. December delivery COMEX gold futures also saw a rise of $20, or 0.45%, closing at $4,419.70 per ounce.
Mr. Jitti Tangsitphakdi, President of the Gold Traders Association and Chairman of Jin Hua Heng Gold Shop, expressed confidence in the continued upward trend of gold prices in the medium to long term, albeit with potential fluctuations. He highlighted market expectations that the Federal Reserve may avoid raising interest rates as a key factor in this trend, compounded by weak US nonfarm payroll figures. The upcoming release of the US Consumer Price Index (CPI) for July is also under close watch, as it could influence the Fed's interest rate decisions.
Projections indicate a sharp rise in gold prices during the third quarter, with a potential peak of $5,500 per ounce by the end of 2026. This is driven by a weakening dollar and increased demand during holiday seasons. The possibility of foreign central banks increasing gold reserves, should the Fed maintain current interest rates, also supports this projection. Long-term investors are advised to take advantage of dips in the market, with the suggestion to use 'cold money' for such investments, avoiding short-term speculation.
Mr. Jitti advised investors who bought gold at higher prices to remain patient, as prices are expected to recover towards the end of the year. He emphasized the impact of the US's significant debt and its potential to erode confidence in the dollar, leading central banks to favor gold. The Kasikorn Research Center noted that the baht is supported by rising global gold prices but faces limited strengthening potential due to unresolved geopolitical tensions.
Additionally, the yen's direction is under scrutiny following recent warnings from Japanese authorities and the US Treasury Secretary about potential intervention due to volatility. The Thai baht's trading range is estimated at 32.95-33.10 baht per dollar, with key factors including foreign fund flows and US economic data being closely monitored.