Local gold prices hit 28,900 baht before Chinese New Year despite negative pressure from the U.S. Federal Reserve’s impending tightening, a Bangkok precious-metals trader.
Pawan Nawawattanasap, CEO of YLG Bullion International Co., surmised that people usually gift gold during the Chinese New Year, thereby driving gold prices closer to within the ceiling range.
She also said prices are being supported by several positive factors, such as demand in safe-haven investments following heavy contractions in both the U.S. stock market and the cryptocurrency market.
Both stocks and cypto rallied in New York Monday after last week’s steep selloff.
She added that gold prices are being affected by tensions between the West and Russia over Ukraine, despite the possibility of the U.S. central bank signaling a series of interest-rate increases to curb inflation.
Pawan said local gold prices will likely stabilize due to the baht being able to maintain a rate above 33 to the dollar.
These factors contribute to global gold prices at the end of January settling at around US$1,809-1,849 an ounce, while local gold prices should be between 28,250-28,900 baht for one baht-weight.
The results of the Fed’s meeting can be expected within the next couple of days.