Thai gold shops face closures as prices top 70,000 baht
Gold Traders Association warns dozens of Thai gold shops may close in 2026 as prices surge above 70,000 baht and gold ornaments demand slumps.
Jitti Tangsitpakdee, president of the Gold Traders Association, told Thansettakij that the sharp rise in gold prices — with the current selling price now exceeding 70,000 baht per baht-weight of gold — could force dozens more gold shops to close this year, following closures seen last year.
He said sales of gold ornaments have slumped because prices have risen beyond consumers’ purchasing power, while many buyers have shifted to gold bars for speculative trading. In addition, a key income stream for many shops — gold pawnbroking — has weakened, as many people have already decided to sell their gold after prices surged.
“The closure of gold shops is not due to losses from product prices,” he said. “It is a decision to close for profit at a time when gold is in an uptrend. At the same time, the new generation of heirs is not interested in carrying on the business, while operating costs have increased and retail income has fallen significantly.”
On the recent rapid and steep rise in gold prices, he said the main drivers were prolonged geopolitical tensions, including the stance of the United States and the situation in Iran, as well as central banks in many countries increasing their gold reserves. These factors have pushed prices beyond earlier expectations far faster than anticipated.
Previously, the association had projected global gold to reach between US$4,800 and $4,900 per ounce. However, on January 23, gold had already exceeded that target, hitting $4,952 per ounce.
He said there is a chance it could reach $5,000 per ounce earlier than the previous estimate of the third quarter — potentially in the near term, and possibly within January — which would mean Thai gold prices could climb towards 75,000 baht before long.
He acknowledged that the current situation is unprecedented, making it difficult to predict the direction of prices and requiring a fresh revision of forecasts. A key factor, he said, is the stance of US President Donald Trump, which has contributed to unusual volatility in the global gold market.
In particular, he noted that in just the first 23 days of this year, global gold prices have already risen by more than $600. He argued that Trump has played a role in fuelling the price surge to generate profit, saying that otherwise, rhetoric alone would not have driven gold prices up so quickly and so sharply.
