1 week Ago
The global gold price is projected to have a resistance level of US$3,360, says local trader Hua Seng Heng, after the safe-haven asset breached $3,200 an ounce for the first time on Friday, fuelled by a weaker dollar and the escalating trade war. Domestic prices may hit 52,300 baht per baht-weight due to trade tensions after US President Donald Trump ratcheted up tariffs on Chinese imports to 145%, but hit a 90-day pause on previously announced tariffs for dozens of other countries. Bullion scaled an all-time peak of $3,219.
84 earlier in the session, and has gained almost 6% this week. Locally, the Gold Traders Association announced the first price increase of the day by 800 baht per baht-weight, taking the trading price of gold bars up to 51,100 baht. US core inflation rose 2.
4% year-on-year in March, down from 2.8% in February and below market expectations of 2.5%, supporting the Federal Reserve's move to cut interest rates.
Despite the slowdown in inflation, two Fed officials signalled that uncertainty from trade policy persists, and there is no indication of imminent rate cuts. SPDR Gold Trust, the world's largest gold exchange-traded fund, continued to accumulate gold for a second consecutive day, adding 12.6 tonnes.
"The bullish momentum may continue due to intensifying trade conflicts. However, with prices already elevated, there's an increased risk of a sharp correction. Strategic entry points and risk management are crucial, given current market uncertainties," Hua Seng Heng said in a report.
The trader recommends a buy-on-dip strategy, accumulating positions around $3,170, targeting a short-term profit at $3,275, and setting a stop-loss at $3,125. A medium-term resistance level was identified at $3,360 by Hua Seng Heng. Domestic gold bars are expected to have support at 50,000 and 49,500 baht, with resistance at 51,900 and 52,300 baht, noted the report.
"Domestic gold prices continue to climb amid global tensions. However, with current high prices and potential baht appreciation pressure, investors are advised to take a defensive approach and wait to accumulate near 50,000 baht, with a profit target at 51,900 baht and a stop-loss at 49,500 baht," according to Hua Seng Heng..
