Gold Market Plummets in Most Volatile Week Since 1980 as Speculative 'Blowouts' Spark Alarm

 

 

Thai Gold Traders Association issues urgent warning to app-based investors as bullion prices swing by 10,000 baht, triggering mass forced liquidations.

 

The Thai gold market has been plunged into a "rollercoaster" era of instability, marking the most violent price fluctuations seen in decades. 

 

The Gold Traders Association (GTA) has been forced to issue a stern warning to a new generation of digital investors after excessive leveraging through mobile trading apps led to widespread "blown accounts" and mandatory sell-offs.

 

Reporting for Thansettakij, journalist Witchuda Chitchan notes that the start of 2026 has proven a baptism of fire for many. The market has shifted from testing financial portfolios to testing the psychological resolve of investors. 

 

As confidence fractures, the panic has begun to spill over into other commodities, including copper, palladium, and even the cryptocurrency markets.

 

 

 

A 10,000 THB Crash in 72 Hours

The scale of the volatility is historic. On 29 January 2026, Thai gold bullion peaked at an all-time high of 81,950 baht per baht-weight.

 

However, in a stunning reversal, the price crashed by more than 10,000 baht—approximately 13%—to settle between 71,000 and 74,000 baht within just three business days.

 

This represents the most severe daily price collapse since 1980. To mitigate the risks of such rapid movement, the GTA took the rare step of doubling the bid-ask spread from 100 baht to 200 baht. 

 

Despite this, the chaos continued; by 5 February, the association was forced to announce a record-breaking 102 price adjustments in a single day, ending with a net loss of 2,400 baht per baht-weight.
 

 

 

The Perils of 'Hot Money'
Jitti Tangsitpakdee, president of the Gold Traders Association, highlighted a worrying trend among younger retail speculators using high leverage in the Futures market.

"We are seeing a significant amount of 'hot money'—funds that were never intended for long-term investment—flowing through online apps," Jitti explained. 

He warned that because Futures contracts require a margin of only roughly 7%, even a minor price dip can trigger a "Forced Sell" event. 

If an investor lacks the liquidity to top up their margin during a 10% price swing, their position is liquidated instantly, leaving no room for a market recovery.

Jitti urged investors to pivot to "cold money"—disposable savings—and to avoid "overtrading" beyond their means. 

"If you have 70,000 baht, do not stretch yourself to buy a full baht of gold. You must keep a cash reserve to weather these swings," he advised.
 

 

 

 

Global Uncertainty Drags Prices

Analysis from YLG Bullion International suggests the market is currently trapped in a "Correction" phase, defined by short-term bounces rather than a sustained bullish trend.

 

On the global stage, Gold Spot prices have been hovering between $4,852 and $5,091 per ounce, unable to maintain a position above key resistance levels. 

 

Analysts at YLG noted that the market is currently "waiting for a signal," with all eyes on upcoming US employment figures and the European Central Bank’s (ECB) policy meeting. 

 

Until there is absolute clarity on the interest rate trajectory of major central banks, the gold market is expected to remain a treacherous environment for speculators.