PATTAYA, Thailand – Gold prices in Thailand surged to a new high on Friday morning, rising 2,000 Baht per baht-weight, with gold jewelry at 68,100 Baht per baht-weight and gold bars at 67,300 Baht, following global spot prices hitting $4,357 per ounce. Investors have poured into gold as a safe haven amid U.S.-China trade tensions, a looming U.S. government shutdown, and expectations of Federal Reserve interest rate cuts.
Despite the continued momentum, several factors could temper gold’s rise. A stronger U.S. dollar or hawkish signals from the Federal Reserve could make gold less attractive. The unprecedented ETF inflows seen in September—up 880% compared to last year—may be unsustainable, risking a future price correction. Additionally, any easing of geopolitical tensions or resolution of trade disputes between the U.S. and China could reduce investor demand for safe-haven assets like gold.
The soaring prices also have a more immediate impact on tourists and foreigners shopping for gifts, especially necklaces and jewelry for Thai girlfriends. Many long-term visitors are finding their budgets stretched, with high gold prices making what once seemed affordable gifts increasingly expensive.
