Commodities
Thai Gold Prices Soar on US Treasury Yield Drop
Thai gold prices surged on August 20, with a jump of 1,550 baht per baht-weight at market opening. The price increase pushed the selling price of 96.5% gold jewelry above 70,000 baht.
The Gold Traders Association confirmed the opening prices: gold bullion was quoted at 69,650 baht for buying and 69,850 baht for selling, while gold jewelry was priced at 68,250 baht for buying and 70,650 baht for selling.
The increase in gold prices is attributed to a sharp decline in U.S. Treasury yields following an announcement by the U.S. Treasury to increase its government bond buyback operations. The resulting decrease in bond yields reduced the opportunity cost of holding gold, supporting international gold prices.