Gold hits Thai record high amid global turbulence

Domestic gold prices are on course to surpass 43,000 baht per baht weight, after hitting a record high of 42,400 baht on Friday, while global prices could reach US$2,800 an ounce later this year based on growing geopolitical conflicts and global interest rate cuts, says the Gold Traders Association (GTA).
Despite a strong baht, local gold prices soared by 300 baht per baht weight on Friday morning to 42,400 baht, surpassing the previous high of 42,150 baht, said GTA president Jitti Tangsitpakdee.
The increase tracked a global jump as tensions in the Middle East pushed bullion to trade at a record high of $2,710 an ounce, up 0.7% from the previous session.
The uncertain US election and geopolitical outlook drove the safe-haven asset to breach $2,700 per ounce for the first time, with analysts saying gold will continue to perform well over the long term.
“Beyond the Middle East, where tensions are expected to linger, there is sabre-rattling in other areas such as the Korean peninsula,” Mr Jitti said. “The prospects of Republican Donald Trump winning the US presidential election next month and the Federal Reserve cutting US interest rates further this year have also given a significant boost to gold prices.”
Central banks from several nations have increased their gold reserves amid economic uncertainties, particularly in the United States and China.
The association projects gold prices as having a resistance level of $2,725 an ounce. If the Fed slashes US rates again at its Nov 7 meeting, the price could test the level of $2,775, he said.
“If the Middle East tension drags on, Mr Trump wins the election, and the Fed further trims the rates as expected, we will possibly see gold prices touching $2,800 an ounce later this year,” said Mr Jitti.
Domestically, a strong baht is the sole factor limiting the upside of gold prices. The Thai currency edged up to 33.12-33.14 per dollar on Friday morning from Thursday’s close of 33.22, with total gains of 0.6% this week.
“The baht makes it hard to predict exact domestic prices. However, it is highly likely gold prices will top 43,000 baht locally based on global price predictions,” he said.
Varut Rungkhum, head of research at YLG Bullion and Futures, said the Fed cutting rates six more times would support the gold price rising to $2,900 early next year. Lower rates tend to benefit non-interest-bearing bullion.
Goldman Sachs now expects the Fed to slash rates by 25 basis points each meeting, bringing the federal funds rate down to 3.25-3.5% in 2025, Mr Varut said.