WITH GLOBAL oil prices still rising while gold prices have been volatile amid growing chaos in the Middle East it is expected that the local prices of both will soar after Songkran festival ends tomorrow (Apr. 17), TV Channel 7 said this morning.
Thai investors are continuously buying gold leading to major local gold shops having announced suspension of online trading last Saturday while retail gold shops in the provinces have gradually started to shut shop and temporarily suspend sales.
Some Thai analysts estimate that the domestic price of gold will soar to 45,000 baht a baht weight.
In its second announcement 10.7 a.m. today the Gold Traders Association set the selling price of 96.5% gold ornaments at 42,100 baht a baht weight and buying price at 40,750.08 baht for equal weight.
The selling price of 96.5% one-baht weight gold bars was fixed at 41,600 baht a baht weight and the buying price 41,500 baht.
The same applies to oil as PTT and Bangkchak Petroleum have fixed pump prices until April 17 as a Thai New Year’s gift to the people. However this is expected to rise after Songkran ends with gasohol likely to climb one baht a litre while diesel, without government support, could rise 5 baht a litre.
However Thailand is rushing tests on use of hydrogen energy which is 60% cheaper than oil and it is expected that prototypes will appear in the last quarter of this year. The goal is for a vehicle to be able to run 1,000km after refuelling just once.
Brent futures for June delivery rose 46 cents, or 0.5%, to $90.56 a barrel by 0005 GMT. US crude futures for May delivery rose 43 cents, or 0.5%, to $85.84 a barrel.
Oil prices had ended Monday’s session lower after Iran’s weekend attack on Israel proved to be less damaging than anticipated, initially easing concerns of a quickly intensifying conflict that could displace crude barrels.
The attack, which Iran called retaliation for an air strike on its Damascus consulate, caused only modest damage, with missiles shot down by Israel’s Iron Dome defence system.
But Israel’s Prime Minister Benjamin Netanyahu on Monday summoned his war cabinet for the second time in less than 24 hours to weigh how to react to Iran’s first-ever direct attack on Israel, a government source said. That raised market concerns that retaliatory measures could impact oil supply.
Iran produces more than 3 million barrels per day of crude oil as a major producer within the Organization of the Petroleum Exporting Countries (OPEC).
The benchmarks had risen on Friday in anticipation of Iran’s retaliatory assault, with prices soaring to their highest since October.
Gold prices ticked up today (Apr. 16), not too far away from a record high hit last week, as concerns about rising geopolitical tensions between Iran and Israel propped up demand for the safe-haven metal.
Spot gold was up 0.2% at $2,387.11 per ounce, as of 0355 GMT, after hitting an all-time high of $2,431.29 on Friday. US gold futures rose 0.9% at $2,403.90.
Gold has got another leg of support from the latest round of Middle East headlines, but it was gaining even before that with central bank purchases and rising inflation expectations also supporting the rally – meaning that gold is behaving like an inflationary hedge once more, City Index senior analyst Matt Simpson said.
“The fact we saw an intraday break above $2400 quickly reversed suggests traders are keen to book profits, which in turn suggests we may be about to experience some sort of a shakeout at these highs.”
Gold rose 1.6% in the previous session despite data showing US retail sales increased more than expected in March.
Data out of US has stirred questions on the prospects of rate cuts, with the market now betting on fewer than two quarter-point cuts by the year-end, from three cuts about a month ago.
“The bullion complex has decoupled from US rates and the US dollar, suggesting robust physical consumption drivers (eg, India/China imports, bar/coin), alt-fiat demand, geopolitical hedging, and central bank buying are supporting the market,” Citi wrote in a note.
Citi projected gold prices to trade at $3,000 per ounce over the next 6-18 months.
Spot silver fell 0.3% to $28.80 per ounce, platinum rose 0.4% at $966.49 and palladium lost 1% to $1,025.43.
CAPTIONS:
Top: Production of gold at Novosibirsk precious metals plant. Photo: Reuters and published by Yahoo!News
Insert: An aerial view shows Majnoon oil field near Basra, Iraq, May 12, 2023. Photo: Reuters/Essam Al-Sudani and published by Yahoo!News
Front Page: Gold ornaments. Photo: Thai Rath
Also read: Domestic gold price adjusted 32 times today, likely to reach 42,500 baht
Gold zooms with price up 450 baht now exceeding 40,000 baht
Govt has failed in economic performance during Q1: Isaan Poll
White House says Iran did not warn US about attack specifics
US will not take part in any Israeli retaliatory action against Iran
Jubilant Thaksin shows no signs of ‘illnesses’ while attending Chiang Mai’s Songkran festival
Yingluck’s planned homecoming only up to Thaksin: Ex-Democrat MP
