Thai gold prices experienced a slight decline on Friday, November 22, 2024, wiht the Gold Traders Association reporting a 200 baht decrease per baht-weight. The dip comes amid global market uncertainty influenced by shifting expectations regarding potential interest rate cuts by the U.S. Federal Reserve and revisions to estimates of the economic impact of former President Trump’s tariffs. Investors are now closely monitoring upcoming economic data releases from the U.S., including the Manufacturing and Services PMI and the Consumer Sentiment Index, for further direction.
Gold prices in Thailand edged lower on Friday, November 21, 2024, declining by 200 baht per baht-weight compared to the previous day, according to the Gold Traders Association.
- Gold bars were quoted at 62,100.00 baht per baht-weight for buying and 62,200.00 baht per baht-weight for selling.
- Gold ornaments were priced at 60,852.24 baht per baht-weight for buying and 63,000.00 baht per baht-weight for selling.
- The total cost of one baht-weight of gold jewelry, including craftsmanship fees, was 16,350 baht.
- Two baht-weight of gold jewelry, including craftsmanship fees, cost 31,900 baht.
- Half a baht-weight of gold jewelry, including craftsmanship fees, was priced at 8,575 baht.
- Two baht-weight of gold bars, including craftsmanship fees, were available for 126,000 baht.
- Five baht-weight of gold bars, including craftsmanship fees, were priced at 315,000 baht.
Domestic gold prices are benchmarked against the spot market at $4,042.00 per ounce and the baht’s exchange rate of 32.52 baht per dollar.
Global gold prices experienced a downward trend as the CME FedWatch market now anticipates only a 32.9% probability of the Federal Reserve reducing interest rates by 0.25% in December. The market also predicts a 67.1% chance of the Fed holding rates steady. This shift in expectations follows the release of minutes from the Federal Open Market Committee (FOMC) meeting on Thursday, which indicated that several Fed officials lean towards maintaining current interest rates at the December FOMC meeting. Contributing to this sentiment, the September Non-Farm Payroll data exceeded analyst expectations and surpassed the figures from August.
However, the Congressional Budget Office (CBO) revised its estimate of the impact of President Trump’s tariffs, stating they are now expected to reduce the deficit by $3 trillion by 2035, down from a previous estimate of $4 trillion in August. This adjustment could potentially impact confidence in U.S. fiscal policy. The evolving outlook for U.S. monetary and fiscal policy is closely watched by investors globally.
Key economic data releases are scheduled for tonight at 9:45 PM U.S. time, with the release of the U.S. Manufacturing and Services Purchasing Managers’ Index (PMI) for November. At 10:00 PM, the University of Michigan’s Consumer Sentiment Index for November will be published.
Analyzing gold prices, the price of gold internationally failed to break through the resistance level of $4,075 and has subsequently retreated. This suggests that gold may test support at $4,010 and could potentially rebound. However, if gold falls below the next support level at $3,990, it may experience a continued downward correction.
