Bangkok: Thai gold and global gold prices have reached unprecedented highs as investors flock to gold, seeking a safe haven amidst fears of an escalating trade war. Today, the price of Thai gold soared to 55,300 baht per baht, prompting experts to recommend selling to capitalize on profits.
According to Thai News Agency, the Gold Traders Association reported that the price of Thai gold has seen multiple adjustments today, rising seven times and falling once, culminating in a total increase of 1,300 baht per baht. This surge marks a record high for domestic gold prices. The selling price for gold ornaments stands at 55,300 baht per baht, while gold bars are priced at 54,500 baht per baht, based on the spot gold price, which hit a new high of 3,475.50 US dollars per ounce. Concurrently, the Thai baht has strengthened to 33.14 baht per dollar.
The New York gold futures market closed above $3,400 on Monday, setting a record high due to the weakening US dollar and investor interest in gold amid concerns over the economic impact of the US-China trade war. China has cautioned other nations against engaging in economic and trade agreements with the US, threatening decisive countermeasures against countries that do so.
Citi Research has adjusted its three-month gold price target to $3,500 an ounce, up from a previous target of $3,200, as investors look to gold as a secure asset. The research firm also anticipates that gold prices will benefit from increased purchases by Chinese insurance companies, following the Chinese government's decision to allow 10 insurance companies to allocate up to 1% of their assets to invest in gold.
Ms. Thipa Navawatthanasap, CEO of YLG Bullion and Futures Co., Ltd. (YLG), noted that although recent trade negotiations between the United States and several partners might lead to short-term profit-taking in gold, the sharp price increase is a significant factor. From the beginning of the year until recently, the world gold price has risen by around $800 per ounce. Similarly, the price of 96.5% gold bars in Thailand has reached 54,500 baht per baht, increasing by 12,100 baht per baht. Meanwhile, SPDR, the world's largest gold fund, has acquired a net purchase of 79.77 tons this year.
In addition, global central banks have consistently bolstered gold purchases, with the World Gold Council (WGC) reporting net purchases for the 15th consecutive year in 2024, totaling 1,045 tons. Central bank purchases exceeded 1,000 tons for the third consecutive year. In 2025, central banks purchased 24 tons of net gold in the first two months. The Central Bank of Poland led with 32 tons, marking an 11-month purchasing streak, followed by the People's Bank of China, which increased its gold reserves by 10 tons.
Kasikorn Research Center observed the baht's adjustment to approximately 33.18-33.20 baht per dollar this morning, compared to the previous day's closing rate of 33.10 baht. The baht's slight weakening follows a robust period, hitting its strongest level in over six months. However, its depreciation remains limited due to continuing capital inflows into the bond market, despite the dollar's weak sentiment amid US economic concerns.
Today's baht movement is projected within the range of 33.15-33.40 baht per dollar. Key factors to monitor include global gold prices, the US trade war with several partners, and foreign fund flows in the Thai financial market.