PATTAYA, Thailand – The president of the Gold Traders Association of Thailand has warned that global gold markets are experiencing unusually high volatility, noting that the recent drop in prices despite ongoing international conflict is something he has rarely seen before.
Jitti Tangsithpakdee, president of the association, said Thai gold prices fell sharply on Tuesday, dropping by 3,550 baht per baht-weight of gold in a single day. Prices fluctuated several times on Tuesday but managed to recover slightly compared with the previous day.
He believes global gold prices are unlikely to fall below around $4,100 per ounce, but cautioned investors to remain careful while markets continue to swing.
“Normally when there is war, gold prices rise because it is considered a safe-haven asset,” Jitti explained. “But this time the conflict appears to be prolonged and widening, yet prices have fallen. In my experience, I have never seen this situation before.”
Another factor influencing the market is the recent move by the world’s largest gold-backed ETF, SPDR Gold Trust, which reportedly sold more than 40 tonnes of gold, despite having purchased large amounts earlier in January and February.
The unusual move has raised questions within the gold trading community about why such a large investor would sell at a loss.
Despite the current volatility, Jitti stressed that gold remains a reliable long-term asset, noting that it has historically outperformed inflation.
He advised investors to closely monitor global developments, including the conflict involving Iran, the United States, and Israel, as well as ongoing global trade tensions, all of which continue to influence market uncertainty.
For those considering investing, he recommended using only “cold money” – funds not needed for short-term expenses – and focusing on long-term investment strategies.
When asked whether gold prices in Thailand could reach 90,000 baht per baht-weight or even 100,000 baht this year, Jitti said hitting 100,000 baht would likely be difficult in 2026, but 90,000 baht remains possible if global prices climb toward $6,000 per ounce.
Meanwhile, activity at gold shops in Bangkok has remained lively, with many buyers taking advantage of the recent price drop to purchase gold bars, hoping prices will rebound and deliver profits in the future. (TNA)
