Thai gold prices drop THB1,300 amid global market turbulence

On Friday (February 6), the Gold Traders Association reported a sharp drop of THB1,300 per baht weight after the market opened at 9.05am, bringing the price to THB72,000 per baht. 

This marked a significant decrease from the previous day's closing price. On Thursday (February 5), a record 102 price adjustments were made throughout the day, causing the price of gold to fall by a total of THB2,400.

On February 6, the domestic gold price for 96.5% gold was reported as follows:

• Gold ornaments: Sold at THB72,800 per baht, with a tax base price of THB70,357.56.
• Gold bars: Sold at THB72,000 per baht, with a buying price of THB71,800.

In contrast, on February 5, the price for gold ornaments was THB74,100 per baht, with a tax base price of THB71,631. Gold bars were sold at THB73,300 per baht, and the buying price was THB73,100.

Spot gold prices also saw a significant decline this morning, dropping to around US$4,768 per ounce. The Comex gold price closed last night at US$4,889.50 per ounce, down by US$61.30, under pressure from the strengthening US dollar and widespread sell-offs in precious metals. 

Furthermore, the nomination of Kevin Warsh as the new Federal Reserve chairman added to the downward pressure on the market.

In Hong Kong, the gold price also fell sharply this morning, with the price dropping by HK$1,720 to HK$44,200.

Global gold and silver prices face heavy fluctuations due to investor speculation

As reported by CNBC, silver prices plummeted by as much as 16% on Thursday, and gold continued to experience volatility into Friday morning, driven by investor speculation in precious metals.

Spot silver dropped nearly 13% to US$76.74 per ounce at 1.48pm EST, while futures in New York fell more than 9% to US$76 per ounce. Meanwhile, spot gold was down by around 2%, reaching US$4,868 per ounce, and gold futures saw a 1.3% decline, sitting at US$4,886.40.

By 5pm EST (5am February 6, Thailand time), spot gold had recovered slightly to US$4,775.22, up by 0.11%. Gold futures, however, continued their downward trend, dropping 2.73% to US$4,786 per ounce. Spot silver stood at US$70.83, down by 0.57%.

Silver, which had reached a high before plunging nearly 30% last Friday, showed a 146% increase in 2025, according to data from LSEG. Analysts suggest that the price volatility has been mainly driven by speculative trading and leveraged strategies, rather than physical demand. 

Sunil Garg, Managing Director at Lighthouse Canton, pointed out that while the demand for silver remains strong in industries such as solar power, catalysts, and electronics, it is advisable to wait for speculative pressures to subside before making significant investments.

Goldman Sachs has indicated that the recent market turbulence reflects Western-driven speculation, rather than Chinese activity. The bank noted that most of the most extreme movements in prices occurred when the Chinese futures market was closed for trading.

The recent silver price volatility has led to comparisons with meme stocks like GameStop, which saw explosive price movements in 2021 due to retail investors on platforms like Reddit. Market observers have warned that the price levels are unsustainable, and silver trading is increasingly resembling the speculative behavior seen in other volatile assets.

Steve Sosnick, Chief Strategist at Interactive Brokers, commented that the trend in precious metals has captured the public's attention, leading to "momentum trading" that surpasses the significant movements observed in various speculative assets.