Thai gold traders held emergency meeting as prices swung
The Thai Gold Traders Association held urgent talks on Feb 2 after violent price swings, platform outages and delays in price-setting amid a sharp sell-off
Gold prices in Thailand were extremely volatile on February 2, 2026, falling sharply and repeatedly throughout the day in line with global spot gold, which saw an unusually heavy sell-off.
The Thai Gold Traders Association reported 69 intraday price adjustments, with prices down as much as 3,050 baht. The latest quoted selling prices were 71,150 baht for bullion and 71,950 baht for jewellery gold, while spot gold stood at US$4,775 per ounce.
The sharp decline and rapid swings caused widespread disruption across the domestic gold market, affecting both investors and gold shop operators. As spot and local prices moved rapidly every 2–3 minutes, online gold trading systems were unable to cope with transaction volumes, causing applications to crash and preventing some investors from executing orders in time as prices slid.
The association also faced difficulties publishing benchmark prices. Jitti Tangsitpakdee, president of the Thai Gold Traders Association, told Krungthep Turakij that at certain points price announcements were delayed by almost 10 minutes because global prices were changing so quickly that it was difficult to determine a stable reference price in time — a situation he said had not happened before.
Investors “stuck at the top” after heavy speculation
The association said it had repeatedly warned over the past two weeks that short-term investors should exercise extreme caution, citing overly aggressive speculation and the risk of sudden price corrections. It warned of the possibility of margin calls if the market swung the wrong way.
It also noted heavy speculative activity in the futures market, saying large funds are key players influencing price direction and that trading volumes in futures markets can exceed the amount of physical gold available globally.
Gold shops under strain; emergency measures discussed on Feb 2 night
The impact was not limited to investors. Gold shop operators were also exposed to potential heavy losses, as the spread between the association’s announced buy/sell prices and actual market prices widened sharply during extreme volatility.
Jitti said the association held an emergency meeting on the night of February 2 with all relevant parties — including wholesale and retail representatives, online system providers and physical shop operators — to agree a joint response. The meeting also discussed improving the association’s pricing system to make price announcements more efficient during periods of severe volatility in overseas markets.
On proposals to introduce controls, he said there had been discussion of temporarily restricting trading — similar to a stock-market circuit breaker — if prices fell beyond a set threshold to limit broader damage. He said the idea required careful discussion to avoid unintended impacts on stakeholders and potential complaints. The association expected clarity after the meeting and said conclusions would likely be communicated on the morning of February 3.
He added that overseas markets were facing similar issues, including sharply higher premiums and, in some areas, emerging shortages as supply failed to meet demand, and said Thailand would monitor how international markets respond.
Analyst: Profit-taking and policy signals intensified the sell-off
Piriyapon Kongvanich, an investment strategist at Bualuang Securities, said gold was sold off after a strong rally that left the market technically stretched, triggering profit-taking.
He said policy factors added pressure, including news that US President Donald Trump had proposed Kevin Warsh as the next chair of the US central bank, prompting markets to reassess the “debasement trade” theme. That shift supported a stronger US dollar and weighed further on gold. He also said options-market mechanics resembling a gamma squeeze accelerated selling beyond normal levels.
In the medium term, he said gold remained supported by structural factors such as geopolitical uncertainty in an increasingly multipolar world, which has encouraged central banks to accumulate gold as reserve assets. He maintained a 2026 target of US$5,250 per ounce.
In the short term, he said gold could remain volatile amid ongoing profit-taking, and suggested gradually accumulating around a support area near US$4,400 per ounce.
