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Gold shines brighter for Thai investors as global prices drop, baht strengthens
Gold trading in Thailand has been livelier when compared to global markets, YLG Bullion and Futures (YLG) said on Monday.
Tipa Nawawattanasub, YLGs’ chief executive officer, said Thai investors had started buying back gold as it gained positive sentiment from a drop in global market prices and the strengthening of the baht, which brought the price of gold in Thailand to its lowest in a year at THB24,400 per baht weight.
She said the number of gold saving accounts in the first three months of this year had risen by 851 per cent compared to the same period last year and by 200 per cent compared to the fourth quarter last year.
“We believe more investors will open gold saving account in line with the direction of precious metal’s price,” she said.
“We have also found that investment in gold bars is still the most popular compared to other types of precious metal investment.”
She said investors turned from risk assets to safe-haven assets as they were worried about the impact of the Covid-19 outbreak on the economic recovery.
“Meanwhile, the price of gold in Thailand had fallen below the global market price. As of April 21, the price of gold in Thailand dropped by THB400 per baht weight or 1.49 per cent compared to the US$112 per ounce or 5.94 per cent drop in global market,” she said.
She expects the price of gold in the middle term to move sideways down with a support line of between THB24,400 and THB24,800 per baht weight and resistance line at THB29,050 per baht weight.
“The price may fall to its lowest at THB22,650 per baht weight or rise to the historic high in August last year at THB30,750 per baht weight,” she added.
Published : April 26, 2021
By : The Nation