Bangkok: Gold opened sharply higher, rising above 75,500 baht, as the market responded to global price shifts and geopolitical developments.
According to Thai News Agency, the Gold Traders Association reported the first gold price update at 9:08 AM. The market saw an immediate increase of 2,100 baht, with buying prices for gold bars at 75,500 baht per baht weight and selling prices at 75,700 baht per baht weight. Gold ornaments were priced at 73,995.96 baht for buying and 76,500 baht for selling per baht weight. The global gold price, known as Gold Spot, was at US$5,065 per ounce. By 11:23 AM, the gold price had changed 13 times, maintaining the 2,100 baht increase.
Analysis from Hua Seng Heng highlights that global gold prices rose following statements by the Greenland Prime Minister about the United States' continued interest in controlling Greenland, despite diplomatic negotiations. Meanwhile, President Trump signed a budget bill, ending a partial government shutdown and benefiting federal agencies until September 30, 2026. Trump also suggested possible nuclear agreement talks, which may ease geopolitical tensions.
Global gold prices showed resilience, testing support at $4,950 and recovering, indicating an upward trend toward resistance levels of $5,052 and $5,100. A decline could occur if prices fall below the next support level at $4,885.
The Thai baht opened at 31.66 baht per US dollar, experiencing slight weakening due to gold buying flows and a weaker dollar. This pressure aligns with a $300 per ounce rise in gold prices since Tuesday morning. Additionally, crude oil price increases, driven by geopolitical tensions involving the US, Iran, and the Russia-Ukraine conflict, affected the baht.
Krungthai Global Markets, part of Krungthai Bank, anticipates further weakening of the baht due to gold buying trends and a potentially stronger dollar. However, depreciation may be limited to the 31.75-31.85 baht per dollar range. Exporters are likely waiting to adjust their dollar holdings based on upcoming Thai election results on February 8th.