Domestic gold opens up 1,900 baht per baht-weight on US-Iran deal hopes
CommodityGeopoliticsMacro
Retail gold prices in Thailand rose by 1,900 baht per baht-weight this morning, with the Gold Traders Association announcing the first price at 9:03 a.m. Gold bars were bought at 66,950 baht per baht-weight and sold at 67,150 baht, while gold ornaments were bought at 65,612.48 baht and sold at 67,950 baht. The increase was supported by a weaker dollar after the DXY index failed to break through the 100 resistance level, along with US services PMI and ADP non-farm private employment data coming in below expectations. Additionally, President Trump said the US is close to reaching a deal with Iran on opening the Strait of Hormuz and maritime security, which could lead to lower crude oil prices, inflation, and Fed interest rates, a positive factor for gold. Meanwhile, China's Ministry of Commerce announced retaliatory measures against the US by tightening export controls on drones and related technology, supporting gold through geopolitical tensions. The SPDR fund bought an additional 4.85 tonnes of gold.
