Gold prices hit a 13-month high, touching US$2,031 per ounce as weak US economic data spurred demand for the safe-haven asset amid a weakening dollar, according to analysts.
Spot gold rose to $2,025.49 per ounce, the highest since March 2022, on Wednesday afternoon as US gold futures firmed at $2,042.
Spot gold is now trading at less than $50 from a record high of $2,072.90 an ounce, reached during the height of the pandemic.
Data on Tuesday showed orders for US manufactured goods fell more than expected in February, while job openings also declined to nearly a two-year low of 1.7 per person, down from 1.9 in January, suggesting the labour market was cooling.
The figures spurred expectations the Federal Reserve might loosen its stance on monetary policy tightening.
The dollar index, meanwhile, plunged to a near two-month low, making bullion cheaper for buyers holding other currencies.
MTS Gold now expects spot gold may retest resistance at $2,070 per ounce, the level it reached in 2020, as the price remains on the uptrend.
In a related development, the Stock Exchange of Thailand (SET) said on Wednesday foreign investors sold Thai stocks worth more than 56.1 billion baht in the first quarter, while daily trading value dropped by 30% over the period to 61.3 billion baht.
SET president Pakorn Peetathawatchai cited the weakening global economy and interest rate hikes as curbing inflation and leading to capital flows out of emerging markets, including the Thai bourse.
Last month, the SET reported outflow of 31.5 billion baht.
Last year roughly $6 billion of foreign capital flowed into the Thai market.
"The market direction is now largely influenced by external factors. If the global economy recovers, capital will flow back to emerging markets again," said Mr Pakorn.
SET senior executive vice-president Soraphol Tulayasathien said several other bourses in the region also recorded capital outflows in March as foreign investors extended the selling streak for two consecutive months after a months-long buying spree.
The baht appears to be sliding against the greenback on the heels of an export slowdown. However, Thai economic growth momentum continues to gather speed, underpinned by tourism and domestic consumption.
Core inflation is on course to return to the central bank's target range in the middle of this year, while the overall financial system is stable.
Banking problems in major economies have not affected local financial institutions and this attracts fund flows to the Thai bond market.
In March, the average trading value of the SET and the Market for Alternative Investment fell 35.9% year-on-year to 61.3 billion baht.
Foreign investors were net sellers for the second straight month tallying 31.5 billion baht in the month, following a four-month net buying streak.