Bangkok: Gold prices are experiencing a significant surge in Thailand, climbing to over 80,000 baht per baht weight, in response to escalating global gold prices.
According to Thai News Agency, the spike in gold prices follows US President Donald Trump's recent threat to attack Iran, which has driven the global gold price to exceed $5,500 per ounce. In Thailand, gold prices have surpassed 80,000 baht, prompting investors to consider taking profits by gradually selling their gold holdings.
The Gold Traders Association reported an increase in the retail price of gold in Thailand by 3,700 baht per baht of gold, aligning with global market trends. As of 10:49 AM, the price had fluctuated 17 times, with gold bars reaching a selling price of 81,650 baht per baht and gold ornaments at 82,450 baht per baht. These movements are influenced by a Gold Spot price high of $5,542 per ounce, alongside fluctuations in the Thai baht, which stood at 31.14 baht per dollar.
Dr. Kritcharat Hiranyasiri, Chairman of MTS Gold Group, commented on the "Investment Minute" program of Thai News Agency that the rapid rise in gold and silver prices is attributed to geopolitical tensions, particularly the ongoing conflict between the United States and Iran. President Trump's warning of a potential naval attack on Iran if it does not engage in nuclear negotiations has accelerated the surge in gold prices, surpassing 80,000 baht per baht weight much faster than anticipated. Silver prices have also increased by 50%, reaching new highs, as investors pour resources into both silver and gold.
YLG Bullion and Futures Co., Ltd. noted that the continual rise in gold prices, nearing $5,600 per ounce, is driven by investors seeking safe-haven assets amid geopolitical and economic uncertainties. This development comes in the wake of President Trump's call for Iran to negotiate a nuclear weapons deal, coupled with threats of severe future US actions. Iran has responded with threats against the US and its allies, further fueling the demand for precious metals.
The U.S. Federal Reserve (Fed) maintained interest rates at their current levels, as anticipated. Fed Chairman Jerome Powell stated that interest rate hikes are not a primary consideration for the Fed's future decisions. Additionally, plans by the cryptocurrency group Tether to allocate 10-15% of its portfolio to gold bullion have contributed to supporting gold prices.
Gold prices have reached an all-time high, surpassing $5,500 per ounce globally, with silver also achieving record levels, exceeding $100 per ounce. Platinum and palladium prices have similarly risen, with the former climbing to $2,745.40 per ounce and the latter surpassing $2,000 per ounce. Key factors driving these increases include geopolitical uncertainty and a weakening US dollar, with the dollar index at its lowest in four years, leading investors to seek safe-haven investments.
In Thailand, silver prices have surged over 55%, with the cost of one kilogram exceeding 132,000 baht, mirroring global trends. The industrial demand for silver, particularly in AI, data centers, solar panels, and electric vehicles (EVs), has contributed to this increase. The global market is facing a fifth consecutive year where demand outstrips production, rapidly depleting silver reserves. China's export restrictions, limiting them to major government-approved players, have further tightened the global silver supply.