Gold bars collage element, commodity

Gold price in Thailand rises by 200 baht amidst banking crisis concerns, supporting the demand for safe assets

The retail price of gold in Thailand (96.5% purity) increased by 200 baht on March 16, according to the Gold Traders Association. The buying price of gold bars was 31,100 baht per baht, while the selling price was 31,200 baht per baht. The buying price of gold ornaments was 30,547.40 baht per gold baht, while the selling price was 31,700 baht per gold baht.

Hua Seng Heng Gold Futures Co., Ltd. analyzed that the Credit Suisse news, which is preparing to go bankrupt due to large stocks not increasing capital and poor US economic numbers, has pushed the price of gold up again until it reached $1,937. Additionally, the risk-off situation has caused capital to flow into debt instruments, causing the yield of US government bonds to plummet again. As a result, market participants are now 45% confident that the US Federal Reserve (Fed) will not raise interest rates at its March 21-22 meeting. Currently, the SPDR Gold Trust fund has a net buy of 1.45 tons of gold, holding a total of 914.72 tons of gold.

As negative news continues to push the gold spot price soaring, the Thai gold market has benefited from the stable baht, which has remained around 34.50. Despite the Gold Traders Association adjusting the price seven times, it is still standing at 31,000 baht.

The increase in the gold price reflects the growing concern over the ongoing banking crisis. The demand for safe assets such as gold is rising as investors seek to minimize risks in their portfolio. The trend is expected to continue in the near future, as the Credit Suisse news has raised questions about the stability of the banking system globally.

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