Bangkok, Gold price today. Rising strongly and making new highs again. After the Fed chairman signaled an interest rate cut this year
Gold Traders Association report The gold price opened this morning in less than 1 hour. The price changed 3 times, increasing by a total of 400 baht/gold baht. In the 3rd round (9:56 a.m.), the price made a new high, setting a record high. The price of gold bars was sold at 36,250 baht per baht, bought at 36,150 baht, gold jewelry was sold at 36,750 baht, bought at 35,504.72 baht, following the Asian gold price that moved up to a new high of 2,150 US dollars/ounce. and the baht exchange rate at 35.65 baht/US dollar
Domestic gold prices surged in line with world gold prices. Mr. Jerome Powell, Chairman of the Federal Reserve (Fed), made a statement to Congress. Signaling that the Fed will cut interest rates this year. Although it has not yet pledged when the reduction will occur. This is because progress in controlling inflation remains uncertain. and stated that the US econom
y is not close to entering a recession. Inflation has fallen sharply since reaching a 40-year high in 2022, but the Fed still needs more confidence in inflation falling before cutting interest rates.
The COMEX (Commodity Exchange) gold contract closed yesterday for delivery in April, increasing $16.30 or 0.76%, closing at $2,158.20/ounce. In addition, gold prices also received a positive factor from the weakening of the dollar. and the fall in US government bond yields. After the release of the Fed Chairman’s statement The weakening of the dollar increases the attractiveness of gold. This makes gold contracts cheaper for holders of other currencies. Falling US Treasury yields reduce the opportunity cost of holding gold. This is because gold is an asset that has no return in the form of interest.
Mr. Worachai Tangsitphakdee Director of the Gold Traders Association said that last year world gold reached a high of 2,145 US dollars/ounce. As for this year, just at the beginning of the year it has already risen
to 2,150 dollars/ounce. It is estimated that there may be a chance of reaching 2,200 US dollars/ounce. As for Thai gold, it is estimated that at the end of the year there may be a chance of reaching 38,000 baht. Normally, when the price of gold climb People will bring gold to sell. But this time was wrong. The more the price of gold moves up People who had just bought gold a few days ago were already selling it. And many people also buy more for short-term speculation.
‘Many people see it as a safe asset during this period. If it’s gold that you already have, you can sell it or you can wait. But if you are buying during this period for speculation, please be careful because investing is risky. Because it is now overbought. It is seen that various funds invested may start selling to make a profit. Gold moves up quickly There is a chance to shrink as well,’ Mr. Worachai stated.
Source: Thai News Agency