Domestic gold prices are expected to continue rising, following a new record of 45,200 baht per baht-weight reached on Tuesday. This surge is attributed to uncertainties around US President Donald Trump’s trade policies, which are boosting global demand for safe-haven assets like gold, according to the Gold Traders Association (GTA).
By midday Tuesday, local gold prices had increased by 250 baht per baht-weight, building on a 350-baht rise the previous day.
On Monday, gold reached a global high of US$2,830.49 after President Trump announced a 25% tariff on most imports from Canada and Mexico, along with a 10% tariff on goods from China, escalating tensions in the ongoing trade conflict between the two largest economies.
However, the gold price pulled back on Tuesday after Trump indicated a 30-day pause on tariffs against Canada and Mexico. This reversal led to a decline in the dollar, making gold less expensive for most buyers.
“While gold prices may stabilize temporarily, we foresee the potential for prices to reach $3,000 an ounce in the medium term, particularly in the second quarter of 2025,” stated GTA president Jitti Tangsithpakdi.
The GTA anticipates that domestic prices could rise to between 46,000 and 47,000 baht per baht-weight, factoring in exchange rate fluctuations, as reported to the Bangkok Post.
Uncertainties surrounding Trump’s policies have prompted central banks around the globe to increase their gold reserves. The SPDR Gold Trust, the largest gold-backed exchange-traded fund, reported a 0.1% increase in holdings, rising to 865.63 tonnes from 864.77 tonnes.
Trump’s initiatives are also expected to contribute to rising inflation, which could slow down the US Federal Reserve’s interest rate cuts. Gold is often viewed as a safeguard against inflation and geopolitical instability, noted Jitti.
Globlex Securities indicates that gold prices are encountering resistance levels at $2,830 an ounce, with another resistance point at $2,845. The anticipated support levels are $2,805 and $2,790.
Despite the recent price hike potentially prompting profit-taking among investors, the overall trend for gold remains upward, particularly after the dollar’s decline, according to the brokerage.
Gold trader Hua Seng Heng identifies resistance at $2,830 and $2,840, with support levels set at $2,800 and $2,790.
For domestic prices, resistance levels are projected at 45,300 baht and 45,400 baht, while support levels are forecasted at 45,000 baht and 44,900 baht, according to the trader.