Thai gold sinks sharply as Fed and inflation fears hit market

Thai gold prices fell sharply on Thursday (May 28), unsettling investors after a highly volatile trading session that saw prices adjusted 28 times during the day.

According to the Gold Traders Association’s latest listed update at 5.22pm, gold bar prices were quoted at 67,900 baht per baht-weight for buying and 68,100 baht for selling. Gold ornaments were quoted at 66,537.24 baht per baht-weight for buying and 68,900 baht for selling.

The Gold Spot price stood at US$4,396.50 per ounce.

The day’s movement marked a sharp drop of 1,150 baht from the previous trading day’s closing level, reflecting heavy pressure from both global and domestic market factors.

Global pressure weighs on Thai gold

Analysts said the sharp fall in Thai gold prices was mainly driven by a steep decline in global Gold Spot prices, as investors reacted to renewed concerns over geopolitical tensions, inflation and the outlook for US interest rates.

International statements and military developments added to uncertainty across global markets, prompting investors to reassess risk assets and lock in gains after gold prices had climbed earlier.

At the same time, inflation concerns have strengthened expectations that the US Federal Reserve may keep policy rates higher for longer than previously forecast. This has pushed the US dollar index higher and placed direct pressure on gold prices.

Investors urged to monitor market closely

The Gold Traders Association and investment experts advised investors to follow market developments closely, warning that current conditions remain highly sensitive.

The sharp one-day fall and repeated intraday adjustments suggest that the gold market is undergoing a major correction after a period of strong gains. Investors looking to buy gold for short-term speculation have been urged to exercise particular caution.