Sunday, May 19, 2024
HomethailandgeneralThai gold price hits record

Thai gold price hits record

Domestic gold prices rose to a record high of 34,100 baht per baht weight on Thursday, up 300 baht from a day earlier, as the intensity of the Israel-Hamas conflict has driven up demand for the safe-haven asset, says the Gold Traders Association (GTA).

The association announced on Thursday the sales price for domestic 96.5% gold jewellery was 34,100 baht per baht weight as the spot gold price was US$1,949 per ounce.

The domestic buying price was 32,897.20 baht per baht weight. The price of gold bars also surged to 33,600 baht per baht weight.

“The domestic gold price continued to rise from a record of 33,800 baht on Oct 18 to 34,100 baht on Oct 19, the highest in history. This is a result of the market’s concern over the war in the Middle East escalating, with gold prices increasing rapidly over the past two days,” said GTA president Jitti Tangsithpakdi.

According to Mr Jitti, anxiety the war could intensify has prompted many people to sell gold.

“However, if the Israel-Hamas fighting continues, it might affect purchasing power for the rest of the year and during the New Year, which is normally the best season for gold shops,” he said.

Thai gold trader Hua Seng Heng released analysis that indicates gold prices rose sharply during the conflict, which is likely to escalate following a deadly explosion at a hospital in Gaza.

Meanwhile, 10-year US bond yields surged past 4.9% after US construction approvals in September rose to 965,000 units, the highest since May 2022.

After breaking the resistance level of $1,950 per ounce, gold prices are expected to remain on an upward trend. Hua Seng Heng said the situation in the Middle East must be monitored, in addition to US interest rate policy.

Hua Seng Heng said the global gold price has resistance levels of $1,962-1,980 per ounce, while the support level is $1,930-1,920.

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