Anticipated US interest rate cut to boost gold prices in May

Gold prices in the domestic market, which had earlier witnessed a surge to 34,550 baht (US$956) per baht-weight during the Lunar New Year, are anticipated to rise again in May. This forecast comes as traders expect the Federal Reserve to begin a cut in US interest rates, thereby potentially driving global prices to US$2,100 per ounce.

Gold Traders Association (GTA) President, Jitti Tangsitphakdee, disclosed that domestic prices of gold have declined by 300 baht from the high experienced during the Lunar New Year as global prices slightly dropped to US$2,019. He suggested that the domestic gold market would respond positively to the anticipated 0.25% cut of the US policy rate in May. Jitti added that the Federal Reserve is projected to reduce the rate at least twice this year, leading to a 0.5% slash in US rates.

“Once the Fed starts…