Citi's latest analysis underscores the impact of rising gold prices on the Thai Baht (THB), prompting the bank to close its short position on the THB/KRW currency pair. "THB has outperformed notably in recent weeks, with higher gold prices providing further tailwinds for the Thai Baht," Citi analysts note. The correlation between THB and gold has strengthened, as evidenced by Citi's THB Nominal Effective Exchange Rate (NEER) reaching historical highs. This trend is further supported by expectations of continued respite on U.S. rates, which could sustain gold's upward momentum. Meanwhile, the South Korean Won (KRW) has faced challenges, particularly from slumping local chipmaker stocks. As a result, Citi exited its short THB/KRW position at a loss of 2.59%, reflecting the shifting dynamics in the currency markets.