On Monday morning, the price of gold in Thailand surpassed US$2,100 per ounce, while the price of Bitcoin surpassed $40,000 in response to growing anticipation that the Federal Reserve (Fed) has completed its US interest rate hike and will begin a rate decrease next year.
Gold contracts on the Comex (Commodity Exchange) market for delivery in February of next year increased $16.70, or 0.80%, to $2,106.40 per ounce on Monday morning.
Gold prices jumped substantially on Friday, according to local gold broker Hua Seng Heng, and surged nearly $70 last week after Fed Chairman Jerome Powell signaled that the US central bank may have finished raising interest rates.
The comments led the currency to weaken and US bond yields to fall, which supported gold prices.
This week’s key indicators include US employment numbers, covering private sector employment in November and non-agricultural employment in the same month.
Hua Seng Heng anticipates that gold prices will continue to rise after breaking through a critical barrier level of $2,050 on November 3. The next level of resistance is above 2,100, which would represent an all-time high.
According to Klein Rodda, an analyst at Capital.com, uncertainty regarding the Fed’s interest rate policy has influenced not only gold prices but also Bitcoin prices, which climbed sharply on Monday morning.
Investors will be looking for clarity on the Fed’s rate policy with the release of non-agricultural employment data in the United States on Friday.
While Wall Street Journal questioned analysts, non-agricultural employment in the United States is predicted to reach 190,000 jobs last month, up from 150,000 jobs added in October. In November, the unemployment rate is predicted to remain unchanged at 3.9%.
Analysts also believe that the possibility of a US interest rate cut will keep gold prices up till next year.
Geopolitics, elections in major nations, and the prospect of major economies entering recession are among the concerns for next year. These concerns, they claim, are fueling an appetite for investment in gold, a safe-haven asset.
Gold in Thailand
In Thailand, gold has enormous cultural, social, and economic significance. The Thai people have a long history with gold, and it plays an important role in their culture. Several characteristics of Thai people’s relationship with gold are as follows:
Thailand is a largely Buddhist country, and gold has long been connected with religious and spiritual values. Many Thai Buddhist temples and statues are covered in gold leaf, which represents purity and enlightenment.
Gold is frequently utilized in different ceremonies and rituals, such as weddings and religious gatherings. It is regarded a fortunate metal, representing wealth, success, and good fortune.
Thailand has a long history of trading in gold. People buy and sell gold jewelry, bars, and ornaments in the country’s gold markets. The gold trade has a huge impact on the national economy.
Thai gold jewelry artistry is well-known around the world. The country boasts a thriving goldsmith sector that produces elaborate and gorgeous gold jewelry that represents both heritage and current aesthetics.
Wealth and Social Status:
In Thai society, owning and wearing gold jewelry is seen as a mark of social rank and riches. People may invest in gold to save money and to show their wealth.
Gold is usually presented as a gift on certain occasions, and it is especially important in traditional Thai weddings as part of the dowry.
Many Thais regard gold as a dependable store of value. It is frequently employed to save money and preserve wealth, particularly during times of economic turmoil.
Some people, in addition to jewelry, invest in gold bullion and coins as a tangible asset. The Thai government has also created gold coins, which has contributed to gold’s attractiveness as an investment.
Gold is widely featured in royal ceremonies and celebrations. The Thai monarchy has always employed gold in many forms, and it is especially important in royal rites and regalia.
The Thai people’s relationship with gold is profoundly entwined with cultural, economic, and societal factors. Gold is not simply a precious metal; it is also a symbol that embodies Thai society’s spiritual, social, and economic values.
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