
Domestic gold prices are set to rise further after reaching a fresh record of 45,200 baht per baht-weight on Tuesday as uncertainties surrounding US President Donald Trump's trade policies drive global demand for safe-haven assets, especially gold, says the Gold Traders Association (GTA).
Local gold prices were up 250 baht per baht-weight by midday Tuesday, following a 350-baht gain on Monday.
Bullion reached a global peak of US$2,830.49 on Monday after Trump imposed 25% tariffs on most imports from Canada and Mexico and a 10% tariff on imported goods from China, reigniting a trade war between the world's largest economies.
The gold price pared gains Tuesday after Trump said he would pause levies against Canada and Mexico for 30 days. The abrupt about-face saw a gauge of the dollar retreat from the highest level in more than two years, making the precious metal cheaper for most buyers.
"Gold prices may consolidate for a short while, but we still see the possibility of prices reaching $3,000 an ounce in the medium term, such as the second quarter of 2025," said GTA president Jitti Tangsithpakdi.
GTA now sees domestic prices potentially rising to a range of 46,000 to 47,000 baht per baht-weight, considering the baht's movements, he told the Bangkok Post.
Policy uncertainties related to Trump have also prompted central banks worldwide to bolster their gold reserves. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.1% to 865.63 tonnes on Monday from 864.77 tonnes on Friday.
Trump's policies would also cause inflation to rise, potentially delaying the pace of US Federal Reserve interest rate cuts. Bullion is considered a hedge against both inflation and geopolitical uncertainty, said Mr Jitti.
Globlex Securities views the gold price as having a resistance level at $2,830 an ounce, then $2,845 for the next level. The support levels are projected at $2,805 and $2,790.
"The recent surge in price may prompt investors to sell gold for profit-taking, but bullion remains on an upward trend after the dollar eased," said the brokerage.
Gold trader Hua Seng Heng sees resistance at $2,830 and $2,840, and support at $2,800 and $2,790.
Domestic prices are projected at 45,300 baht and 45,400 baht for resistance levels, and 45,000 baht and 44,900 baht for support, said the trader.