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Gold Price in Thailand Plummets 300 Baht to 30,250 Baht

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Gold price, Trading, Thailand

The gold price in Thailand plummeted 300 baht to 30,250 baht on Wednesday, while spot gold stood at US$1,772 an ounce, an all-time six-month low.

As the dollar strengthened against the euro, gold prices plummeted, sparking a heavy selloff amid fears the Fed will increase rates aggressively to fight inflation, slowing global growth significantly.

Euro’s sharp decline was driven by forecasts that the European Central Bank would delay tightening monetary policy over fears of a more severe recession because Europe imports a lot of energy and now faces energy security threats.

In the medium term, gold prices will remain on a downward trend, according to Warut Rungkam, head of research at YLG Bullion and Futures.

Gold Price Will Rise

The Fed will be forced to move forward with dovish monetary policies as the US economy starts to grow, causing the dollar to weaken. According to Mr. Warut, gold prices are likely to rise again in the fourth quarter.

The central bank’s decisions on monetary policy can be affected by rapid changes in economic conditions, however, so investors should closely monitor Fed movements.

Traders should begin to sell gold to take profits when prices begin to rebound to $1,784-1,786 an ounce, then wait to buy when prices weaken again by looking at support at $1,752. According to him, $1737-1,722 an ounce is the next support level.

According to Mr. Warut, domestic gold prices will support 29,400, 29,600 and 29,850 baht per baht, with resistance at 30,450 and 30,750 baht.

Gold prices are currently at $1,785 per ounce, according to Globex Securities. The brokerage suggests that investors take profits if the price does not increase.

Gold prices have been volatile during the first half and will continue to fluctuate in the second half, according to Pawan Nawawattanasub, CEO of YLG Bullion International.

According to her, the price is uncertain whether it will rise above $1,786 per ounce. Despite many negative factors, especially the Fed’s aggressive rate hikes, Ms. Pawan believes the price of gold has a chance to rebound to $1,916 an ounce, the high for the second quarter.