Gold prices in the domestic market, which had earlier witnessed a surge to 34,550 baht (US$956) per baht-weight during the Lunar New Year, are anticipated to rise again in May. This forecast comes as traders expect the Federal Reserve to commence a cut in US interest rates, thereby potentially driving global prices to US$2,100 per ounce.

 

Gold Traders Association President, Jitti Tangsitphakdee, disclosed that domestic prices of gold have declined by 300 baht from the high experienced during the Lunar New Year as global prices slightly dropped to US$2,019.

 

He suggested that the domestic gold market would respond positively to the anticipated 0.25% cut of the US policy rate in May. He added that the Federal Reserve is projected to reduce the rate at least twice this year, leading to a 0.5% slash in US rates.

 

Jitti stated, “Once the Fed starts cutting the rates, gold prices will have a resistance level of US$2,100 per ounce and support level at US$1,975.” He further predicted a potential rise in domestic gold prices to 40,000 baht per baht-weight, albeit not within the current year. reported Bangkok Post.

 

As global geopolitical tensions rise and central banks worldwide fortify their gold reserves, the probability of gold supply falling short of demand in the long term increases, according to Jitti.

 

by Alex Morgan

Photo courtesy of Nutthawat Wichieanbut

 

Full story: The Thaiger 2024-02-14

 

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Market odds of a US rate cut in in June have fallen from 64% to 31%.

If anything, the Fed will be forced to jack rates higher in light of yesterday’s CPI report. Bonds and gold took it on the chin. 

24 minutes ago, khunjake said:

If anything, the Fed will be forced to jack rates higher in light of yesterday’s CPI report. Bonds and gold took it on the chin. 

 

Looks like the cpi caused the dollar to bump up over 36 baht/dollar too.

3 minutes ago, John Drake said:

 

Looks like the cpi caused the dollar to bump up over 36 baht/dollar too.

The only way is up!

 

I pass by the gold shop every day and nothing important...

On 2/14/2024 at 11:42 AM, webfact said:

He added that the Federal Reserve is projected to reduce the rate at least twice this year, leading to a 0.5% slash in US rates.

 

Since when have these predictions been any good?