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Domestic Gold Prices Keep Hitting Records

  • The domestic price of gold reached a record this week, reaching 28,200 baht for one baht weight of gold, an increase of 31.5%.
  • Prices have accelerated every day this week, similar to global gold prices, as well as the weakening baht has also bolstered higher gold prices.
  • COVID-19 and the US-China trade war have increased global and domestic risk, making gold a fall-back safe-haven asset that continues to be prevalent, even as prices continue to climb.
  • Visit The Financial Today’s homepage for more stories.

Bangkok • The domestic price of gold reached a record this week, reaching 28,200 baht for one baht weight of gold, an increase of 31.5%.

At the beginning of this year the local price continued its climb from 21,450 baht, the Gold Traders Association (GTA) reported.

Prices have accelerated every day this week, similar to global gold prices, as well as the weakening baht has also bolstered higher gold prices.

The spot price of gold was US$1,866 on Thursday, reaching an almost nine-year high and a 24.2% increase from $1,518 on the first date of this year.

Tanarat Pasawongse, Hua Seng Heng Group’s chief executive, said local gold pricing trends and investor sentiment are different from the past five months.

Mr. Tanarat said, “Sales yesterday were unlike the past three days, as some people bought even though the local gold price set a record high.”

Unlike the last four months, he said, some people were keen to sell their gold for profit, but others wanted to hold on to see how high prices could be.

Customers buying gold bars and asking for physical gold dramatically increased this week, an indication that holding physical gold might make them feel secure during a bad economy, Mr. Tanarat said.

COVID-19 and the US-China trade war have increased global and domestic risk, making gold a fall-back safe-haven asset that continues to be prevalent, even as prices continue to climb.

“The gold price continues to trend up, but local investors should monitor the news closely, as the figure has risen considerably and may decline through profit-taking if there is news of a vaccine,” Mr. Tanarat said.

He said that the position of SPDR Gold Shares (GLD), the largest gold exchange-traded fund, is an indication that investors should evaluate information before deciding to generate profits.

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[BangkokPost]

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