Gold Prices Surge in Thailand Amid Trump's Trade Policy Concerns

Thai gold market sees 800 baht jump as global investors seek safe havens amidst escalating tariff tensions

 

Gold prices in Thailand have experienced a sharp increase, reflecting movements in the global market as investors seek refuge from economic uncertainties brought about by US President Donald Trump's reciprocal trade policies.

 

The Gold Traders Association announced in its first daily update at 09:04 local time today (Friday, 11 April 2025) that prices had jumped by 800 baht, reaching 51,200 baht. This substantial rise follows yesterday's volatile trading session, during which the gold price was adjusted 18 times before closing with an overall gain of 550 baht.

 

Today's Gold Prices (96.5% Purity)


Gold Jewellery: Selling at 52,000 baht per baht weight
Tax base: 50,179.60 baht per baht weight
Gold Bullion: Selling at 51,200 baht per baht weight, buying at 51,100 baht per baht weight


 

Thipa Nawawattanasap, chief executive officer of YLG Bullion and Futures Ltd., noted that gold prices have been particularly volatile following a record high of $3,167.20 per ounce during last Thursday's trading session.

 

This peak occurred in reaction to the United States' announcement of retaliatory tariffs, which have fuelled concerns about a potential US economic downturn.

 

Despite experiencing some profit-taking that caused a drop of $210 per ounce to $2,956.92 on Monday, gold has demonstrated remarkable resilience compared to riskier assets. Even after this correction, gold remains up by $460 per ounce, or 17.48%, since the beginning of the year.
  



 

The recent fluctuations are primarily attributed to concerns surrounding the US tariff policy, which has intensified following China's retaliatory measures.

 

This tit-for-tat approach has resulted in progressively higher tariffs, with Chinese imports now facing levies of up to 125% from the United States.

 

YLG has outlined two potential scenarios for the market:


If negotiations fail and tensions escalate, both the US and global economies risk falling into recession or possibly stagflation. While gold prices might initially dip due to demand for cash, this would likely be followed by a strong rally driven by safe-haven buying, potentially pushing gold to targets of $3,300-$3,500 per ounce in the longer term.
Conversely, if countries successfully negotiate a resolution and reduce trade tensions, gold demand might dampen as riskier assets recover. Nevertheless, YLG forecasts gold could still reach $3,200 per ounce based on supportive underlying fundamentals.


 

The company believes that the current medium-term consolidation presents a favourable opportunity for investors to accumulate gold on price dips, given the increasing probability of a US recession within the next 12 months.

 

Such a recession would likely compel the Federal Reserve to ease monetary policy, weakening the dollar and supporting gold prices.

  



 

Meanwhile, MTS Gold Mae Thongsuk had previously projected that gold prices would trade sideways or undergo a short-term correction this week. Their analysts suggested that as long as the gold price remained above the $3,054 support level, the market remained healthy.

 

President Trump recently announced a blanket 10% baseline tariff on all countries, alongside additional retaliatory tariffs on specific US trading partners, including China (34%), India (26%), South Korea (25%), Japan (24%), and the European Union (20%).

 

For this week, MTS GOLD anticipates key support levels for global gold at $3,040 and $3,000, with major resistance at $3,100 and $3,130. For Thai gold, support is expected at 49,500 baht and 49,000 baht per baht weight, with resistance at 50,300 baht and 50,600 baht per baht weight.

 

Key factors to watch include the baht exchange rate, US dollar movements, oil prices, US Treasury bond yields, responses to US tariff policies from trading partners, the implementation of President Trump's policies, and forthcoming US economic data, including CPI and PPI.

(2025/04/11-00:00)