Federal Reserve statements impact gold prices, Thai domestic rates soar

Gold prices have been impacted by recent statements from the Federal Reserve, indicating possible rate increases this year and a likelihood of high rates throughout next year. This information, released on Wednesday, elevated the US dollar and bond yields, putting pressure on gold as investors revised their future price expectations for the precious metal. Consequently, Thursday saw a retreat in gold prices, with spot gold declining 0.1% to US$1,927.84 per ounce and US gold futures falling 1% to $1,948.10.

The Federal Reserve also dismissed concerns about a potential US recession, which in turn reduced the demand for safe-haven assets like gold. Despite international fluctuations, domestic gold prices in Thailand soared to a record high of 33,550 baht on September 20, largely driven by a depreciation of the baht, which has weakened by 11% this year.

Gold Traders…