Gold Market Buzzes for Chinese New Year After 21% Drop, Aims for 71k-77k Baht

Thansettakij•Economy•8h ago

Reader Briefing

The Thai gold market is experiencing a resurgence ahead of Chinese New Year, following a significant 21% price correction, with projections indicating a trading range of 71,300 to 77,240 Baht.

•The gold market is showing renewed activity stimulated by the upcoming Chinese New Year.
•Gold prices have rebounded after a substantial fall of over 21%.
•Analysts predict gold prices will fluctuate between 71,300 and 77,240 Baht.
•Geopolitical uncertainties and potential Federal Reserve policy shifts are considered downward pressures.

Overview

•Geopolitical uncertainties and concerns over a new Fed Chair potentially implementing tight monetary policy create downward pressure.
•Gold prices have fallen more than 21%, leading to a recommendation for short-term speculative investment.
•Short-term investment is advised within a range of $4,800-$5,200 per ounce.
•If the price fails to break the $5,200 resistance, a large correction is possible, with buying opportunities sought between $3,900-$4,400 per ounce.
•This translates to Thai gold prices of approximately 57,930-65,360 Baht.
•The Thai baht's expected depreciation, due to the Bank of Thailand's online gold trading control measures, benefits Thai gold prices.
•US interest rates are expected to remain stable at 3.25-3.50%, with only a 2.25% cut mid-year, and inflation a concern at 2.7-3.0%.
•The period from Chinese New Year to the second quarter is considered an opportune time to accumulate gold, with key support levels at $4,600 and $4,420 per ounce, corresponding to Thai gold prices of 68,000-65,000 Baht.

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Key Entities

Person

Kevin Warsh(เควิน วอร์ช)ℹ️

Potential new Federal Reserve Chair whose monetary policy is a point of concern for the gold market.

Organization

Bank of Thailand(ธนาคารแห่งประเทศไทย)ℹ️

The central bank whose measures on online gold trading are influencing Thai gold prices.

Federal Reserve(เฟด)ℹ️

The central bank of the United States, whose monetary policy decisions significantly impact global gold prices.