BANGKOK, Thailand – Domestic gold prices surged 1,550 baht per baht-weight at the opening on Thursday, Aug. 20, pushing the selling price of 96.5% gold jewelry above 70,000 baht following a sharp decline in U.S. Treasury yields. The Gold Traders Association confirmed the 9:03 a.m. opening prices.
The opening prices were:
Gold bullion was quoted at 69,650 baht per baht-weight for buying and 69,850 baht for selling.
Gold jewelry was quoted at 68,250 baht for buying and 70,650 baht for selling.
According to an analysis by Hua Seng Heng Gold Futures, international gold prices moved higher after the U.S. dollar index fell to 98.76 from 99.66, a decline of 0.88%. U.S. 10-year and 30-year Treasury yields also fell below 4.70% and 5.20%, respectively. The move followed an announcement by the U.S. Treasury that it would increase the size of its government bond buyback operations by more than twofold, from US$2 billion to at least US$4 billion. The resulting decline in U.S. bond yields reduced the opportunity cost of holding gold and helped support international gold prices.
However, oil prices remain a potential source of pressure for the gold market. Brent and WTI crude prices could rise further amid geopolitical tensions involving Iran and the United States. Hua Seng Heng warned that a broader conflict could increase inflationary pressure and raise the possibility of higher U.S. interest rates in the future, which could weigh on gold prices. Meanwhile, the SPDR Gold Shares fund bought 9.41 tons of gold, providing additional support to the market.
