The domestic retail price of gold (96.5%) opened this morning with a surge of 1,550 baht per baht-weight, following a sharp drop in U.S. bond yields, pushing the selling price of fabricated gold above the 70,000-baht-per-baht-weight mark.
The Gold Traders Association announced its first gold price quote of the day at 9:03 a.m. as follows:
- Gold bar: buying price 69,650 baht per baht-weight, selling price 69,850 baht per baht-weight.
- Fabricated gold: buying price 68,250 baht per baht-weight, selling price 70,650 baht per baht-weight.
An analysis by Hua Seng Heng Gold Futures Co., Ltd. noted that in recent price movements, global gold rose as the U.S. Dollar Index (DXY) declined to 98.76 from 99.66 (-0.88%), while U.S. Treasury yields on the 10-year and 30-year bonds fell below 4.70% and 5.20%, respectively.
This was driven by the U.S. Treasury Department's announcement that it would more than double the size of its government bond buyback operations (Debt Buyback), increasing the amount from the previous 2 billion dollars to at least 4 billion dollars. This caused U.S. bond yields to fall rapidly in the debt market and reduced the opportunity cost pressure of holding gold.
Nevertheless, Brent crude and WTI crude oil prices remain at risk of further increases, after Iran was reported to be considering the possibility of attacking U.S. military targets in Europe — including Bulgaria and Cyprus — should President Trump launch a new war. Such a development could cause the conflict to widen, supporting inflation and raising the risk of future Fed interest rate hikes, which would be a negative factor for gold.
On the fund side, the SPDR Gold Trust purchased 9.41 tonnes of gold.
