20-10-2023 (BANGKOK) Domestic gold prices in Thailand reached a new all-time high of 34,100 baht per baht weight on Thursday, marking a 300 baht increase from the previous day. The surge in prices is attributed to the escalating conflict between Israel and Hamas, which has heightened demand for the safe-haven asset, according to the Gold Traders Association (GTA).
The GTA announced on Thursday that the sales price for domestic 96.5% gold jewellery stood at 34,100 baht per baht weight, aligning with the spot gold price of $1,949 per ounce.
Consequently, the domestic buying price reached 32,897.20 baht per baht weight, while gold bars soared to 33,600 baht per baht weight.
GTA President Jitti Tangsithpakdi stated, “The domestic gold price has continued to rise, reaching a historic high of 34,100 baht on October 19, up from the previous record of 33,800 baht on October 18. This surge is a response to the market’s concerns over the escalating war in the Middle East, with gold prices experiencing rapid growth over the past two days.”
Jitti further highlighted that the anxiety surrounding the intensifying conflict has led many individuals to sell their gold holdings. However, if the Israel-Hamas hostilities persist, it could potentially impact purchasing power for the remainder of the year, including the upcoming New Year period, which is traditionally a peak season for gold shops.
Thai gold trader Hua Seng Heng provided an analysis indicating that gold prices have witnessed a significant rise during the conflict, which may further escalate following a devastating explosion at a hospital in Gaza.
Meanwhile, 10-year US bond yields surged above 4.9% after US construction approvals in September reached 965,000 units, the highest level since May 2022.
With gold prices surpassing the resistance level of $1,950 per ounce, experts anticipate a continued upward trend. Hua Seng Heng emphasized the importance of monitoring the situation in the Middle East, in addition to keeping an eye on US interest rate policies.
According to Hua Seng Heng, the global gold price has resistance levels ranging from $1,962 to $1,980 per ounce, while the support level lies between $1,930 and $1,920.
