Thai baht and gold prices rise amid US economic concerns
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On August 25, 2026, the Thai baht reached its strongest level against the US dollar in over two months, trading at 32.58, while gold prices hit a three-month high of $2,463.36 per ounce. The US Treasury’s August 19 announcement to double the maximum size of its long-term debt buyback operations to at least $4 billion failed to calm market concerns over US fiscal deficits and national debt, leading to a weaker dollar. According to Kanajana Chokpaisarn of Kasikorn Research Center, the market interpreted the Treasury's move negatively, prompting further dollar selling. Additionally, Siriluk Pipatphakrap of Hua Seng Heng Futures noted that lower expectations for Federal Reserve interest rate hikes and increased global gold demand have further supported the rising prices.
Consequences
Kasikorn Research Center projects that the Thai baht will continue to appreciate against the dollar, potentially reaching 32.30 per dollar as US policymakers contemplate further intervention. Hua Seng Heng expects international gold prices to reach $4,800 per ounce next month, with the potential to touch $5,000 by year-end.
Sources
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