Gold Demand Surges Across Asia Amid Currency Strength, Economic Uncertainty

Gold prices have surged globally, driven by economic uncertainty, a weakening U.S. dollar, and expectations of Federal Reserve interest rate cuts. In Thailand, rising gold prices combined with a strong local currency are encouraging consumers to purchase more gold for the fifth consecutive year, complicating central bank efforts to manage the baht. India has seen gold prices reach historic highs, fueling demand for coins and bullion alongside traditional jewellery purchases, though buying patterns are shifting toward exchange schemes due to elevated prices. Vietnam is experiencing a similar rally with gold prices climbing significantly in line with global trends. Market analysts suggest further upside potential for gold if the Federal Reserve delivers multiple rate cuts as anticipated. The U.S. dollar’s recent decline, amid concerns over Fed independence and political interference, has also contributed to the gold price surge and increased investor interest in the precious metal as a safe haven.