Gold prices in Thailand plunge 1,550 baht as AI stock rout hits global precious metals

Gold prices in Thailand fell sharply by 1,550 baht at the opening of trading on Saturday (October 31), extending losses from the previous day as a sell-off in Wall Street technology stocks triggered a wider retreat in global precious metals markets.

The Gold Traders Association announced the first domestic price adjustment at 9.12am, bringing the selling price of 96.5% gold bullion down to 62,200 baht per baht-weight, compared with Friday's closing price of 63,750 baht.

Under the opening announcement, 96.5% gold bullion was priced at 62,000 baht for buying and 62,200 baht for selling. Gold jewellery of the same purity was quoted at 60,761.28 baht for buying and 63,000 baht for selling.

The steep decline followed a volatile session on Friday (October 30), when domestic gold prices were revised 27 times before finishing 650 baht lower.

Combined, the two sessions saw Thai gold prices decline by 2,200 baht per baht-weight, reflecting heightened volatility in international financial markets.

Global gold prices fall to one-year low

Reuters reported that spot gold dropped 3.5% to US$3,880.97 per ounce on Friday, its lowest level since October 2025.

US gold futures for December delivery also declined, settling 3.3% lower at US$3,898.90 per ounce.

The downturn coincided with heavy selling in US technology shares as investors questioned whether the substantial capital being directed towards artificial intelligence (AI) development would generate sufficient returns.

The pressure spread beyond equities, with investors selling liquid assets, including gold, as stock market losses intensified.

Independent metals trader Tai Wong described the situation as a severe market correction, warning that precious metals would struggle to avoid the impact of the equity sell-off.

"The sky is falling," Wong told Reuters, adding that corporate earnings had supported the rally in AI-related stocks, but that foundation was beginning to show signs of weakness.

Analysts at Commerzbank suggested that falling technology shares may have prompted forced selling of safe-haven assets such as gold as investors sought cash to meet margin calls.

Silver also dropped below US$50 per ounce, while palladium fell beneath US$1,000, highlighting the scale of selling across the precious metals market.

Gold loses more than 30% from January peak

The latest decline leaves spot gold more than 30% below its record high of US$5,595 per ounce reached in January, with expectations of persistently high interest rates adding pressure to prices.

Despite the sell-off, analysts do not necessarily regard the downturn as the end of gold's longer-term investment appeal.

In the short term, prices are expected to remain volatile as investors respond to margin calls in equity markets and weaker physical demand from Asia.

Over the longer term, renewed central bank purchases could provide support if gold remains below US$4,000 per ounce, although the timing and extent of any recovery remain uncertain.

Investors weigh risks and buying opportunities

For investors who purchased gold at higher prices, the sharp decline has raised questions about whether to sell at a loss or hold their positions in anticipation of a recovery.

The outlook presented in the report favours avoiding panic selling where investors do not urgently require the funds, citing potential support from central bank demand.

For prospective buyers, the 1,550-baht price decline could offer an opportunity to consider gradual accumulation through dollar-cost averaging (DCA), rather than committing all available capital at once.

Under this approach, investors would divide their purchases into smaller amounts while monitoring whether international gold prices begin to establish a more stable base.

However, continued volatility in global equity markets, interest rate expectations and Asian demand means that further declines remain possible before any sustained recovery.