Thai gold prices plunge 1,350 baht as global bullion slides
Thai gold prices dropped sharply as spot gold fell below US$4,000 an ounce, pressured by a stronger dollar and Fed rate expectations
Thailand’s gold market opened sharply lower on June 25, with domestic prices dropping by 1,350 baht in the first price announcement of the day.
The Gold Traders Association announced the first adjustment at 9.08am, sending local gold prices down heavily from the previous day’s closing level. On June 24, gold prices had already been adjusted 34 times during the day, ending with a total decline of 450 baht and bringing gold bar prices to 64,350 baht per baht-weight.
Domestic gold prices open sharply lower
For 96.5% gold in Thailand on June 25, the first announced prices were as follows.
Gold ornaments were priced at 63,800 baht per baht-weight for selling, with the tax base set at 61,549.60 baht.
Gold bars were priced at 63,000 baht per baht-weight for selling and 62,800 baht for buying.
Previous day saw repeated adjustments
The latest decline followed a volatile trading day on June 24, when the Gold Traders Association made 34 price announcements.
By the final announcement of that day, gold ornaments were selling at 65,150 baht per baht-weight, with the tax base at 62,868.52 baht.
Gold bars were selling at 64,350 baht per baht-weight and were being bought at 64,150 baht.
Spot gold falls below US$4,000
The sharp fall in Thai gold prices came after global spot gold continued to weaken in morning trade, dropping below US$4,000 per ounce to around US$3,976.
US gold futures also closed sharply lower overnight, falling by US$140.60 to around US$4,008.80 per ounce.
The global decline was driven by pressure from a stronger US dollar, which rose to its highest level in more than a year.
Fed rate expectations pressure bullion
Gold also came under pressure from market expectations that the US Federal Reserve may raise policy interest rates more than once this year.
Higher interest rates tend to weaken demand for gold because bullion does not provide interest income. A stronger dollar also makes gold more expensive for buyers using other currencies.
The Hong Kong gold market also opened lower, with prices falling by 755 Hong Kong dollars to around 37,375 Hong Kong dollars.
The latest move leaves investors watching whether global bullion can regain support above the US$4,000 level, while Thai gold prices remain exposed to both international gold movements and exchange-rate pressure.
