Gold traders are warning of a possible price correction after bullion surged past US$5,100 per ounce for the first time, driven by geopolitical tensions and a weakening US dollar that also pushed the baht to appreciate beyond 31 per dollar.
Siriluck Pakotiprapha of Hua Seng Heng Futures said the next resistance level is around $5,200, though short-term profit taking could trigger a pullback. Gold briefly topped $5,110 as investors reacted to renewed trade threats from US President Donald Trump and broader global uncertainty.
The dollar weakened against major currencies amid speculation of possible US involvement in supporting Japan’s yen, raising concerns over policy direction and Federal Reserve independence.
Domestically, gold prices jumped 1,700 baht per baht weight in morning trade, with gold bars reaching 74,800 baht. Global gold prices have risen 17.9% this year, while Thai prices are up 15%, influenced by baht volatility. Siriluck noted that every 10-satang appreciation in the baht adds roughly 200 baht to local gold prices.
The baht traded between 31.07–31.09 per dollar, strengthening from 31.20 at Friday’s close, supported by record-high gold prices and a stronger yen, according to Kasikorn Research Centre (K-Research). The firm expects the currency to move in a 30.85–31.10 range in the near term.
K-Research also cautioned that the baht’s sharp rise — making it Asia’s top-performing currency — may be partly driven by inflows of unverified funds, urging authorities to monitor foreign capital for potential money-laundering risks.