Gold prices fell 3.72%, closing at $4,606 per ounce on Thursday afternoon, ending a two-week rally. The move followed statements from United States President Donald Trump, who indicated the nearing completion of major strategic objectives in the military campaign against Iran.
In Thailand’s domestic market, gold bars were quoted at 71,400 baht per baht-weight, with price adjustments recorded on 40 occasions throughout the trading session. The local fluctuation reflects global volatility caused by the tense situation in the Middle East, impacting Asian investors and market liquidity.
Gold accumulated a significant depreciation of 11% in March, representing its worst monthly performance since 2008. According to analysts, the precious metal’s main support is estimated at $4,400 per ounce and in the range of 66,900 baht in the Thai market, while resistance is projected between $4,660 and 74,000 to 75,000 baht.
The cost of borrowing in the United States rose following Trump’s speech, with the yield on 10-year U.S. Treasury bonds increasing, as well as the dollar index. These variations influenced the fall of gold, since dollar-denominated assets tend to suffer from the appreciation of the U.S. currency.
During his speech, President Trump said that American attacks against Iran would intensify for a period of two to three weeks. He also highlighted significant progress in military operations, suggesting that the campaign’s main objectives were nearly achieved. These statements negatively impacted gold’s value, reflecting a reduced demand for assets considered safe havens.
The SPDR Gold Trust, one of the largest gold investment funds in the world, reduced its holdings amid rising geopolitical uncertainties. Furthermore, institutions such as YLG Bullion & Futures and Globlex Research confirmed that the metal is under selling pressure in international exchanges.
The rise in oil prices worsened concerns about global inflation, a factor that has directly influenced the Federal Reserve’s monetary policy (the United States Central Bank). Despite this, investors await the next U.S. nonfarm payroll report data to assess whether there will be interest rate cuts, an element that could alter the gold trajectory.
Despite the recent downward move, analysts such as Jaronvet Saksri project that gold’s support will remain above $4,100 per ounce throughout this year. Likewise, Pi Securities points out that the metal’s value still remains comfortably above the $4,500 per ounce level, despite recent volatility.
In summary, the price of gold has been strongly influenced both by military tensions and by economic indicators from the United States. The next step will be the release of employment data in the country, which may provide investors with new guidelines on the Federal Reserve’s decisions regarding interest rates.
