Gold prices continue magic ride

Robust Thai currency to persist

- NAREERAT WIRIYAPONG NUNTAWUN POLKUAMDEE

Gold exceeded $4,800 an ounce on Wednesday and shows no signs of slowing. REUTERS

(REUTERS)

The baht is likely to appreciate further after it broke 31 to the US dollar to touch its highest level in nearly five years yesterday, as gold prices edged towards a once-unthinkable target of US$5,000 per ounce, say currency and gold traders.

Kasikorn Research Center (K-Research) sees the next resistance level for the baht at 30.65 to the greenback after the Thai currency strengthened to 30.88 per dollar in morning trade yesterday, its strongest level in four years and 10 months.

The sharp appreciation has been driven by skyrocketing gold prices to a record high exceeding $4,800 an ounce on Wednesday, buoyed by safe-haven demand and a softer dollar as US President Donald Trump's pursuit of Greenland threatened to reignite a trade war with Europe, said Kanjana Chockpisansin, the think tank's head of banking and financial sector research.

Bullion climbed 2.5% to $4,882 an ounce on Wednesday amid heightened tensions between the US and NATO over Greenland.