BITE SIZE Prachachat by Prutthinan Sudprasert
Can’t deny that the price of gold during this period is gaining strength, soaring continuously. Until the sale price of gold jewelry exceeded 40,000 baht, setting the latest All Time High record.
Although the latest gold price on April 5, 2024 at 5:15 pm has decreased by 50 baht from the previous day’s closing price, the gold price is still trending in an upward direction.
Many people are new to following economic news. Or are you a newbie to investing in gold? There is little doubt that Soon the price of gold will increase. Just adjust it down each time. Who decided? And what factors affect the price of gold?
Prachachat BITE SIZE invites you to learn together.
Who sets the price of gold?
Setting the price of gold in Thailand It will be decided by the Gold Price Control Committee of the Gold Traders Association. Which includes a committee of 5 gold shops: Jin Hua Heng Gold Shop, Hua Seng Heng Gold Shop, Liang Seng Heng Panit Gold Shop, Lu Chang Huat Gold Shop. and Tae Chib Hui Gold Shop
By determining the price of gold each time, it refers to 4 variables:
1. Gold Spot price or world gold market price Buying and selling We have to look at the gold situation within the country. How much demand is there? It must be imported from abroad to be sold within the country. or export gold abroad
2. Premium or various expenses incurred when importing/exporting gold. Including shipping costs Bank interest risk value Various insurance costs imposed by foreign gold traders. This cost affects the cost of importing gold to sell or export gold abroad.
3. The value of the baht per US dollar changes all the time and changes every time the gold price is updated
4. Demand and Supply within the country, taking into account the number of purchases and sales by different groups, including gold importers or exporters, Yaowarat gold shops, gold wholesale shops, gold retailers, and large gold investors. and retail gold investors
What factors shake the price of gold?
about the price of gold In addition to looking at the various variables that occur when setting gold prices, There are also economic factors that affect the price of gold. What are the main factors that affect the price of gold?
Factor 1 is the government’s monetary policy and interest rates.
If interest rates increase, it means that the economy is starting to show good signs. more confidence the price of gold will adjust downwards. But if interest rates fall, it means the economy is starting to go bad. confidence falls The price of gold will rise. Because people will turn to investing in gold. which is a safe property instead
The second factor is the price of oil.
It is one factor that causes inflation. When the price of oil rises Inflation will rise accordingly. and cause the price of gold to increase But if the price of oil falls Inflation will fall and the price of gold will also fall.
The third factor is the value of the US dollar.
The US dollar is a currency that is the medium of trade around the world. When the dollar weakens the price of gold will increase Because people invest in gold to store value. But when the value of the dollar strengthens The price of gold will fall. Because people will turn to investing in the dollar instead.
The last factor is Demand and Supply or domestic needs.
This issue is based on market mechanisms. It varies from the needs of the production sector. The jewelery sector, the investment sector, the government sector need to keep as reserves. up to the amount of gold production Selling pressure from the central bank and how much old gold is in the system
Although the price of gold during this period has increased strongly, investing in a variety of securities will be good for money. our savings In addition, following the world situation Know what is happening in the world. It helps us make smarter investment decisions.
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