Gold Prices Decline as Baht Appreciates
The gold market experienced a decline in prices today, with a 250 baht drop due to three adjustments. This downward pressure on domestic prices can be attributed to the appreciation of the baht. However, foreign gold prices have shown an upward trend as the dollar is expected to depreciate. Market speculation suggests that the Federal Reserve is approaching the end of its rate hike cycle.
Gold Traders Association Announcement
On Tuesday (July 18, 2023), the Gold Traders Association announced that the market closed at 250 baht, despite a rise in the gold spot price. However, the baht’s appreciation has negatively impacted domestic prices, as the dollar continues to depreciate and swings near a one-year low.
Gold Trading Details
- Gold bars: Buyback price at 31,750.00 baht/gold baht, sellout price at 31,850.00 baht/gold
- Gold ornaments: Buyback price at 31,184.12 baht/gold baht, sellout price at 32,350.00 baht/gold baht
The domestic gold price is based on the spot market at $1,960.00 per ounce, considering the exchange rate of 34.25 baht to a dollar.
Foreign Gold Prices Soar While Dollar Weakens
Foreign gold prices continue to rise due to various factors that contribute to the weakening of the US dollar. Recent data showed a slowdown in US inflation for June, creating pressure on the Federal Reserve to raise interest rates.
The spot gold price increased by 0.36% to $1,962 per ounce, while US gold futures rose by 0.48% to $1,965.85.
The dollar index remains stagnant at 99.48 points, hovering around its lowest level in a year after experiencing significant depreciation last week. Consequently, gold appears more affordable and attracts investors holding other currencies.
Thai Baht Appreciation and Prime Minister’s Vote on Fed Meeting
Today, the Thai baht opened with appreciation in the market. It is crucial to keep an eye on the outcome of the prime minister’s vote and the upcoming Federal Reserve meeting.
Diesel Tax Reduction Measures and Gold Outlook
The Ministry of Foreign Affairs intends to raise diesel prices to 32 baht per litre after the expiration of diesel tax reduction measures.
Analysts predict that gold has found new technical support at $1,950, expecting it to remain above this level as major central banks have yet to conclude their rate hike cycles. With the dollar still under pressure, gold prices are positively influenced.
The SPDR Gold Shares fund, the largest bullion fund globally, recently sold 1.73 tonnes of gold while currently holding 912.93 tonnes.
Upcoming US Economic Data Release
On the radar tonight is the release of June retail sales data for the US. Market expectations anticipate a 0.5% increase compared to May’s 0.3% growth. Additionally, industrial production figures for June are projected to show a 0.0% increase following a 0.2% decline in May.
Gold, today’s gold prices closed the market, adjusted 3 times, down 250 baht, domestic prices were under pressure from baht appreciation. Unlike foreign gold prices moving higher As the dollar is likely to depreciate, the market expects the Fed to be close to the end of its rate hike cycle.
Gold Traders Association When announcing the gold price on Tuesday (July 18, 2023), the market closed at 250 baht, although the gold spot price moved up. But domestic prices were under pressure from the appreciation of the baht. Because the dollar continues to depreciate. Swing near a one-year low
Gold bars buy back 31,750.00 baht/gold baht and sell out 31,850.00 baht/gold gold ornaments buy back 31,184.12 baht/gold baht and sell out 32,350.00 baht/gold baht
domestic gold Based on spot market at $1,960.00/oz. and based on the Thai baht, 34.25 baht / dollar
View gold price direction chart
Foreign gold today, the price continues to soar higher. Of factors supporting the US dollar which continues to weaken. After US inflation in June showed signs of slowing. which puts pressure on the US Federal Reserve (Fed) to raise interest rates
Spot gold was up 0.36% at $1,962 an ounce. and US gold futures were up 0.48% at $1,965.85.
dollar index side Swing in a narrow range around the lowest point in a year at 99.48 points after depreciating severely in the last week. As a result, gold is cheaper. And it is attractive to investors who hold other currencies.
Thai baht today open market appreciation Keep an eye on the prime minister’s vote – Fed meeting
Ministry of Foreign Affairs Aims to Raise Diesel at 32 Baht/Litre After Diesel Tax Reduction Measures End
Chart showing the US dollar index.
Analysts estimate that gold has technically found new support at $1,950 and is not expected to fall below that area anytime soon as major central banks are yet to bring their rate hike cycles to head The dollar is still under pressure. which has a positive effect on gold prices
While the SPDR GOLD SHARES fund, the world’s largest bullion fund, sold 1.73 tonnes of gold, holding 912.93 tonnes.
for tonight US It will release June retail sales. The market is expected to increase 0.5% from a 0.3% increase in May, and industrial production for June is expected to increase 0.0% from May’s 0.2% decline.
#Gold #adjusts #times #closes #baht #strengthening #baht #pressure #domestic #prices #PPTVHD36
