Fed cuts, geopolitics support outlook
Rising crude oil prices risk pushing inflation higher, increasing the prospects of elevated interest rates. While gold is traditionally seen as a hedge against inflation, high interest rates tend to weigh on the non-yielding asset.
Bullion has finished its downward trend, supporting the price to reach US$5,500 per ounce or 90,000 baht per baht weight for local gold bars by the end of the year, says Kritcharat Hirunyasiri, chairman of MTS Gold, one of Thailand's top three gold traders.Despite the lingering conflicts in the Middle East over the past few weeks, gold has stayed firmly above $4,500 an ounce and significantly higher than this year's low of $4,100, he said.
"The downward price trend is over," noted Mr Kritcharat, adding that the short-term resistance level is $4,820 an ounce or 73,600 baht for domestic gold bars.
Following the increase of 65% in 2025, bullion has been under pressure from the Gulf war since late February, as high crude prices risk pushing inflation higher and increasing the prospects of elevated interest rates.
