BANGKOK, Thailand – Gold prices in Thailand jumped another 550 baht at the opening on Friday, pushing gold bullion above the 70,000-baht-per-baht-weight mark, while expectations surrounding U.S. Treasury bond buybacks could provide further support for the precious metal. The Gold Traders Association’s first announcement at 9:04 a.m. put gold bullion at 70,100 baht per baht-weight for buying and 70,300 baht for selling. Gold jewelry was quoted at 68,705.12 baht for buying and 71,100 baht for selling.
Hua Seng Heng Gold Futures said global gold prices had held above the 4,480-dollar support level, keeping the upward trend intact. Gold could continue rising toward resistance around 4,540 and 4,575 dollars, although a break below 4,450 dollars could send prices back into a sideways pattern.
Recent movements in gold have been influenced by U.S. Treasury yields. The 10-year and 30-year yields rebounded after a sharp decline, following data showing initial U.S. jobless claims fell by 6,000 to 206,000, below the 210,000 expected by analysts.
Oil prices have also continued to rise amid heightened tensions involving the United States and Iran. Washington has announced financial sanctions targeting countries that assist Iran, while concerns over Iran’s trade and financial links have increased worries about oil supply, inflation and the future path of Federal Reserve interest rates.
Higher inflation and interest-rate expectations can weigh on gold because they may support bond yields and reduce the appeal of non-yielding assets. However, the U.S. Treasury’s plan to buy back 10- to 30-year government bonds could provide a counterweight. The maximum size of the buyback program is expected to increase from 2 billion dollars to at least 4 billion dollars.
Analysts said the move could put downward or sideways pressure on longer-term bond yields, potentially creating a positive environment for gold. With Thai gold already breaking above 70,000 baht, traders will closely watch both global gold resistance levels and movements in U.S. Treasury yields for the next direction.
