WITH THE domestic gold price fluctuating wildly through 32 adjustments today (Apr. 8) that led to the selling price of 96.5% gold ornaments finally closing at an all time of 41,150 baht a baht weight, up 400 baht from the previous day, an expert expects gold bars to rise to 42,500 baht, Matichon newspaper said this evening (Apr. 8).
During 9.07 a.m. to 5.06 p.m. the Gold Traders Association made 32 price adjustments with the buying price of 96.5% gold ornaments finally reaching 39,825.32 baht.
The selling price of 96.5% one-baht weight gold bars ended at 40,650 baht per baht weight and the buying price 40,550 baht.
Since April 1 (seven sessions) the domestic price of the precious metal has jumped more than 2,100 baht a baht weight.
Mr. Phibunrit Wiriyaphon, director of the Gold Research Centre, said today’s historic wild fluctuations of gold price stemmed from concern of clashes erupting between Israel and Iran in a deadly escalation of the war in Gaza and increased purchase in Asia, particularly by China since last November.
“I think we will see more of the price going up 500 baht a session, as happened in the past where we saw the price jump by 350-450 baht a day.
“Gold bars are being sold at 40,650 baht today, the next level will be 41,000 baht, then 41,500 baht with the highest level expected to be around 42,500 baht – the momentum is strong right now.
“Where the resistance level is concerned, this has to be estimated again because right now there are no factors causing gold to go on a downward spiral,” he said.
Gold prices rose today (Apr. 8) to a record high for the seventh consecutive session, a move that analysts anticipate could be driven by strong demand from Asian central banks, despite traditional headwinds from a stronger US dollar and elevated interest rates, a Reuters report published by Yahoo!News said.
Spot gold was up 0.4% at $2,338.80 per ounce as of 1135 GMT, after hitting a record high of $2,353.79 earlier in the session. US gold futures gained 0.6% to $2,358.40.
“Gold bulls may have taken their latest cues from the People’s Bank of China (PBOC), which extended its buying spree of the precious metal for a 17th straight month in March,” said Han Tan, chief market analyst at Exinity Group.
China held 72.74 million fine troy ounces of gold at the end of March, up from 72.58 million ounces at the end of February, official data showed on Sunday.
“With the PBOC as well as the Reserve Bank of India soaking up bullion to buffer their respective reserves, this massive buying spree by global central banks is certainly fuelling spot gold’s price surge.”
Bullion has risen more than 13% this year, despite headwinds from strong US economic data, and bets that interest rate cuts could be delayed beyond June.
“There’re only two buyers in my book that would have that kind of attitude towards gold. One could be program buying by a central bank. The other alternative, impervious to market fundamentals, is option buying,” said independent analyst Ross Norman.
UBS raised its year-end target for bullion to $2,250 per ounce, in view of firmer demand and with a pick up in exchange-traded-fund (ETF) buying likely ahead.
London’s gold price benchmark hit an all-time high of $2,336.90 this morning, the London Bullion Market Association said.
Spot silver was up 0.9% to $27.73 per ounce, platinum climbed 1.4% higher to $940.30 and palladium rose 1.1% to $1,014.25.
CAPTION:
Top and Front Page: Gold bars and chains. Photos: Matichon
(Reuters reporting by Harshit Verma in Bengaluru; Editing by Vijay Kishore and Shounak Dasgupta)
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