High unemployment figures from US may send gold soaring

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The price of gold is likely to go beyond Bt30,000 per baht weight again now that the baht has weakened due to the political situation, experts said on Wednesday (September 2).

Nuttapong Hirunyasiri, managing director of MTS Gold Group, said the price of gold in the next two months will possibly rise further given its support and resistance lines at US$1,975 and $2,000 per ounce, respectively.

In Thailand, the support and resistance lines are at Bt28,500 and Bt30,000 per baht weight, he said, adding that the precious metal could hit a new high.

“We advise investors to follow US employment data on Friday, as the price of gold will rise if the numbers are worse than expected,” he said.

“Domestically, we advise following the direction of the baht. The currency will not strengthen too much because the economy is suffering from the Covid-19 fallout and the political situation.”

However, he said, the baht may strengthen and pull down the price of gold once foreign investments flow into the country in response to efficient fiscal policies and improvements in other Asian economies, especially China.

“Investors should evaluate the situation closely every month. We also advise that gold be bought as a long-term investment, because the price should not hit its lowest point in the near future,” he added.

Jitti Tangsitpakdee, chairman of the Gold Traders Association, said he doesn’t think the price of gold will rise much in the short term because no major tragedies have taken place.

“However, we need to wait for the US employment data to see if it is worse than the market expected,” he said. “The price will be under pressure because global funds have plenty of gold for sale and they may decide to sell off to make profits.”

He said he expects the price of gold to remain at Bt29,000 per baht weight, but advised investors to monitor the situation closely.