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Gold Prices Dropped in Thailand

gold prices

Recently, Thailand’s Gold Traders Association declared the purchase rate per baht-weight for gold ornaments at 20,617.60 baht and 21,000 baht per baht-weight for a gold bar.

And the selling price was set at ฿21,600 and ฿21,100 respectively.

However, the purchasing prices on Friday’s close was at ฿20,678.24 for gold ornaments per baht-weight and ฿21,050 for gold bar per baht-weight.

According to Reuters, gold prices held close to its highest in over a year on Friday as the US dollar fell and the Fed’s expected increase of interest rates in December is lowered because of weak economic data.

On the other side after Mario Draghi, President of European Central Bank, suggested that the ECB might begin reducing its huge stimulus program this fall while the euro hit multi-year highs.

A weaker dollar increases the demand for gold by making it less expensive for owners of other currencies, and lower security returns also reduce the opportunity cost of owning unyielding bullion.

Increase in interest rate also pushes up security yields and the dollar accordingly. Price of spot gold went down to 0.1% at $1,347.8 by 1943 GMT after hitting $1,357.54. This is the highest since August 2016. Making a consecutive gain for 3 weeks spot gold prices went up by 1.7% this week.

Delivery of US gold futures for December settled over $1,350 an ounce. Carsten Menke, a commodities research analyst in London at Julius Baer, pinned the rise to the weak dollar and hopes that interest rate rises would be delayed.

Though high prices have weakened demand a bit for physical gold in top consumer Asia. Yet, demand for gold as a “safe-haven investment” is still strong when it comes to commodity trading (also known as binary options).

It is still profitable investment with a trading platform like IQ Option and others.

According to ScotiaMocatta analysts, technical resistance was at $1,353, gold’s peak last September, but upward momentum could lift it to the 2016 high of $1,375.

 

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