A Billion-Baht Vision: How One Family is Putting Chiang Rai on the Global Luxury Map

Gold prices advanced for a third consecutive session on Tuesday as expectations of a US interest rate hike in the coming months weakened, while investors turned their attention to the minutes of the Federal Reserve’s latest policy meeting for indications about the future direction of monetary policy. Spot gold gained 0.2% to $4,424.28 per ounce by 0130 GMT. US gold futures for December delivery also increased 0.2%, reaching $4,480.90 per ounce. The precious metal has received support from growing expectations that the US Federal Reserve may maintain its current interest-rate stance following a series of weaker-than-expected economic indicators. The US dollar remained close to multi-month lows against a basket of major currencies, providing additional support to gold and other dollar-denominated commodities. A weaker greenback generally makes gold more affordable for buyers holding other currencies, potentially boosting demand in international markets. IG market analyst Tony Sycamore said gold’s recent advance was being supported by softer US economic data released last week. The data has strengthened expectations that the Federal Reserve could leave borrowing costs unchanged rather than move towards another rate increase. Gold typically benefits from lower interest rates because the metal does not generate interest or dividends. When yields on interest-bearing assets decline, the opportunity cost of holding bullion becomes comparatively lower, making gold more attractive to investors. According to a recent Reuters poll of economists, most analysts expect the US central bank to keep its benchmark interest rate unchanged at its next meeting and maintain the rate through the end of the year. Market expectations have also shifted significantly. The probability of a quarter-point rate increase in September has fallen sharply, with traders now assigning nearly a 65% probability that the Federal Reserve will keep rates unchanged. The change followed unexpected job losses in July, softer-than-anticipated consumer price inflation and weaker retail sales data. Investors are now closely watching the release of the Federal Reserve’s meeting minutes, scheduled for Wednesday. The minutes could provide further insight into policymakers’ views on inflation, employment and the timing of any potential future rate adjustments. Geopolitical developments are also contributing to demand for gold as a traditional safe-haven asset. Sycamore said bullion appeared to be regaining some of its safe-haven appeal despite higher bond yields, particularly amid renewed tensions surrounding Iran and the United States. A senior Iranian official told Reuters that Tehran would move towards a “fully offensive” military posture after efforts to negotiate a permanent end to the conflict with Washington stalled. The development came as the United States ruled out extending a temporary ceasefire arrangement, adding to uncertainty in financial markets. Higher geopolitical risks can encourage investors to increase exposure to traditionally defensive assets such as gold, particularly when uncertainty surrounding economic and monetary policy is already elevated. Other precious metals also recorded mixed movements during Tuesday’s session. Spot silver climbed 0.9% to $66.40 per ounce, extending gains in the broader precious-metals market. Platinum edged 0.2% higher to $1,772.75 per ounce, while palladium moved in the opposite direction, declining 0.3% to $1,330.05 per ounce.

Consumers continue to bear a substantial burden of taxes, levies and distribution margins on petroleum products, with a significant portion of the prices of petrol and high-speed diesel (HSD) going towards government charges and other components rather than the basic fuel cost. According to official documents, petrol is currently priced at Rs327.62 per litre, while the basic cost of the product stands at Rs197.69 per litre. This means consumers are paying around Rs130 per litre in the form of petroleum levy, taxes, freight-related charges and margins. The documents indicate that the government has imposed a petroleum levy of Rs80 per litre on petrol, making it one of the largest components of the additional charges paid by consumers. In addition to the petroleum levy, petrol carries a climate support levy of Rs5 per litre and customs duty of Rs21.24 per litre. The price also includes an inland freight equalisation margin of Rs7.48 per litre. Meanwhile, oil marketing companies (OMCs) receive a margin of Rs7.87 per litre, while petroleum dealers are entitled to a margin of Rs8.64 per litre. Taken together, these taxes, levies, freight charges and commercial margins add a sizeable amount to the underlying cost of petrol, resulting in a significant difference between the basic product cost and the final price paid at filling stations. Diesel also carries substantial charges A similar situation is visible in the pricing structure of high-speed diesel. According to the documents, the basic cost of HSD has been calculated at Rs264.76 per litre, whereas its notified consumer price stands at Rs380.86 per litre. The difference of approximately Rs116 per litre represents taxes, levies and various margins included in the final price of diesel. The petroleum levy on HSD stands at Rs74.28 per litre, while a climate support levy of Rs5 per litre is also included in the price structure. Consumers are additionally paying Rs15.68 per litre in customs duty on HSD. The inland freight equalisation margin accounts for another Rs4.63 per litre. The pricing structure also provides Rs7.87 per litre as the margin for oil marketing companies and Rs8.64 per litre as the dealers’ margin. The figures highlight the significant role played by government levies and other charges in determining retail petroleum prices. While the basic cost reflects the underlying price of the petroleum product, the final amount paid by consumers also incorporates a range of taxes, levies, freight costs and margins. The petroleum levy remains one of the most prominent components of the pricing structure for both petrol and diesel. The government uses petroleum-related levies as an important source of revenue, while other components are intended to cover costs associated with transportation, marketing and retail distribution. The high level of charges has a direct impact on consumers and businesses, particularly because petrol and diesel are widely used for transportation and commercial activities. Changes in fuel prices can also influence the cost of transporting goods and passengers and may eventually affect prices across different sectors of the economy.

Asian stock markets opened higher on Monday, taking cues from Wall Street’s latest gains after weaker-than-expected US employment data reduced expectations of an immediate increase in borrowing costs. However, rising oil prices and uncertainty surrounding developments in the Gulf limited the overall optimism in financial markets. Investors were also closely monitoring the situation around the Strait of Hormuz, a crucial route for global energy supplies, after Iran said discussions over the reopening of the strategic waterway were nearing an agreement. Iran announced on Sunday that negotiations with Oman on establishing new shipping routes through the Strait of Hormuz had reached their final stages. Tehran, however, maintained that normal traffic through the waterway would resume only after the United States fulfilled additional conditions. The uncertainty surrounding the route kept pressure on crude markets. Brent crude futures increased 0.9% to $84.32 a barrel, while US West Texas Intermediate crude gained 0.7% to $78.74 per barrel. The latest increase in energy prices has added another layer of uncertainty for investors ahead of the release of US inflation figures. US Inflation Data in Focus Market participants are now turning their attention to the US consumer price index report scheduled for Wednesday. Economists are expecting headline consumer inflation to rise by 0.1%, while core inflation, which excludes food and energy costs, is projected to increase by 0.2%. A stronger-than-expected inflation reading could revive concerns that the Federal Reserve may be forced to keep interest rates higher for longer and potentially consider another rate increase at its September meeting. Michael Feroli, chief US economist at JPMorgan, said his forecast for core inflation at 0.22% would probably not be sufficient on its own to trigger a rate increase in September. However, he cautioned that repeated monthly increases close to 0.3% could change the outlook. Feroli also highlighted the possibility of a rebound in prices of core goods after they declined for two consecutive months, saying this would be an important factor for markets to monitor. Expectations for a September rate increase have weakened significantly in recent days. Futures markets now indicate roughly a 44% probability of a rate move in September, compared with about 67% a week earlier. Asian Equities Follow Wall Street Higher The decline in expectations for an immediate increase in US interest rates helped US Treasury bonds rally on Friday and supported a strong performance by Wall Street equities. The positive momentum carried into Asian trading on Monday. Japan’s Nikkei index climbed 0.6%, while South Korea’s benchmark market gained 0.5%. MSCI’s broad index of Asia-Pacific shares excluding Japan also advanced 0.3%, reflecting improved investor sentiment across regional markets. The gains came as traders continued to assess the impact of softer US employment data on the Federal Reserve’s monetary policy outlook. Lower expectations for interest-rate increases generally support equities because cheaper financing conditions can encourage investment and improve corporate earnings prospects. European Markets Show Caution European markets were less enthusiastic, with futures pointing to modest declines at the start of trading. EUROSTOXX 50 futures and Germany’s DAX futures each slipped 0.1%, while FTSE futures were down 0.4%. In the United States, S&P 500 futures declined 0.1%, while Nasdaq futures remained largely unchanged. The subdued futures performance followed a particularly strong week for US technology stocks, with the Nasdaq gaining around 5% amid a series of encouraging corporate earnings reports. Strong Corporate Earnings Support US Stocks Corporate earnings have remained a major source of support for US equities. According to analysts at Bank of America, nearly 90% of companies in the S&P 500 had reported their results, with earnings per share rising approximately 30% year-on-year after excluding investment gains recorded by Alphabet and Amazon. The proportion of companies exceeding earnings expectations also remained unusually strong. Around 76% of reporting companies beat analysts’ earnings-per-share estimates, matching the highest level recorded since 2021. Artificial intelligence-related businesses continued to stand out among the strongest performers. Bank of America analysts said companies linked to AI had recorded median earnings-per-share growth of around 28%, compared with approximately 12% for businesses without a direct AI connection. However, analysts expect the pace of AI-related earnings growth to moderate in the coming quarter, with consensus forecasts pointing to growth of around 16%. Investors will have fewer major earnings releases to digest this week, although several important technology companies are scheduled to report results. These include semiconductor manufacturer Applied Materials, networking equipment company Cisco and cloud infrastructure provider CoreWeave. Bond Yields and Dollar Remain in Focus In the bond market, the yield on the benchmark 10-year US Treasury note edged slightly higher to 4.673%. Investors are also preparing for approximately $125 billion in new US government debt issuance during the week, which could influence Treasury yields and broader financial-market conditions. The recent decline in bond yields, combined with improving appetite for riskier assets, has placed pressure on the US dollar. The euro remained close to a seven-week high at around $1.1557. Meanwhile, the dollar was little changed against the Japanese yen at approximately 157.85. Currency traders remain cautious about the possibility of intervention by Japanese authorities if the yen weakens further. Japan has previously expressed concern over sharp and rapid movements in its currency, particularly when excessive weakness threatens to increase import costs. Gold Holds Near Record Levels Gold also remained firmly supported as lower bond yields improved the appeal of the non-interest-bearing precious metal. Spot gold was trading around $4,342 an ounce after recording a gain of more than 7% during the previous week. The metal continues to benefit from a combination of factors, including expectations surrounding US monetary policy, movements in Treasury yields, currency fluctuations and geopolitical uncertainty. With investors awaiting US inflation data and closely watching developments around the Strait of Hormuz, markets are likely to remain sensitive to changes in energy prices and interest-rate expectations in the days ahead.