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Gold Prices Expected to Continue Climbing This Week

Gold Prices Expected to Continue Climbing This Week

The Gold Research Center (GRC) anticipates that gold prices will continue to rise this week, influenced by three main factors: the ongoing crisis in the Middle East, expectations surrounding the Bank of Japan’s (BoJ) monetary policy meeting, and ongoing weakness in US economic indicators.

According to the GRC Gold Survey, domestic gold prices are predicted to increase this week, contrasting with the predictions of many gold analysts who foresee stability or potential declines.

Last week, the Gold Traders Association reported that the price of 96.5% gold bars ranged between 42,750 and 44,000 baht per one-baht weight (15.1 grams), closing at 43,700 baht on Friday, marking an increase of 1,150 baht from the previous week.

Key developments to monitor this week include the situation in the Middle East. The conflict in Gaza may have the potential to de-escalate following US Secretary of State Antony Blinken’s recent visit, during which he urged Israel to avoid further tensions with Iran and to seek a ceasefire with Hamas and Hezbollah, especially with the US presidential elections on the horizon.

Furthermore, the BoJ’s monetary policy meeting this week is particularly notable, as Kazuo Ueda, the BoJ governor, indicated that the bank has time to evaluate additional monetary policy measures while suggesting no immediate interest rate hikes, despite the yen experiencing its lowest level in nearly three months.

In addition, important US economic data is set to be released, including figures on private employment from Automatic Data Processing, non-farm payrolls, the unemployment rate, and average hourly earnings for October 2024. These data points will offer further clarity on the US economic landscape.

Local trader Hua Seng Heng observed that gold prices reached historic highs last week, driven by heightened buying interest due to escalating tensions in the Middle East.

On Saturday morning, Israel conducted missile strikes on Iran, although Iran later confirmed that its nuclear facility remained unaffected.

Meanwhile, Brics nations (Brazil, Russia, India, China, and South Africa) are reportedly developing a new payment system to lessen their dependence on the US dollar. The SPDR Gold Trust, the largest gold fund globally, also acquired 1.15 tonnes of gold last week.

Domestic gold bar prices are expected to rise further, supported by global trends and a weakening baht, which is in line with regional currencies impacted by the strong dollar. The research center advises investors holding gold to consider maintaining their positions to maximize profits.

As of market opening on Monday, domestic gold prices remained stable, with gold ornaments priced at 44,100 baht per baht weight and gold bars at 43,700 baht per baht weight—slightly below last week’s peak of 44,000 baht. At the same time, the baht was trading at around 33.81 baht per dollar.

Globally, the spot market gold price on October 28 was approximately US$2,732 per ounce, down from last week’s peak of $2,749 per ounce.

Hua Seng Heng forecasts global gold prices will find support at $2,720 per ounce, with resistance at $2,758 per ounce this week.

For domestic 96.5% gold bars, support is expected at 43,450 baht, while resistance is seen at 43,900 baht.

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