BANGKOK, Thailand – Gold prices hit new highs on global markets as trading activity surges. Thai gold traders are opposing government proposals to tax online gold trades aimed at curbing the baht’s strength, calling it a step backward that would harm commerce. They urged the Bank of Thailand (BoT) to establish a clearing house and adjust currency management formulas instead.
Dr. Kritrat Hiranyasiri, Chairman of MTS Gold, said at a meeting with the BoT on Monday that the ministry’s proposed tax on online gold transactions in baht would negatively impact both domestic and international gold trading, which has an annual turnover exceeding 3 trillion baht. Online trading is growing rapidly, especially through apps and Gold Futures on the Thai Futures Exchange (TFEX), with daily volumes of 9–20 tons or 20,000–35,000 contracts. A tax would disrupt this market, similar to the effects of proposed stock transaction taxes.
Traders proposed that the BoT establish a foreign currency clearing house, in addition to the current baht clearing system, to reduce foreign exchange conversion costs and mitigate pressure on the baht. They also suggested that the BoT update its currency management formulas to better reflect current economic conditions.
Regarding gold exports to Cambodia, traders confirmed that transactions are fully compliant with anti-money laundering regulations, using KYC procedures to verify customers. Thai-Cambodian gold trade has been ongoing for decades without incident.
Dr. Kritsarat emphasized: “We oppose the online gold trading tax as it will disrupt the market, especially for citizens trading via apps. Establishing a clearing house and updating currency formulas internally would be far more effective.”
Domestic gold prices on 16 Sept surged 450 baht to record highs, with gold bars selling at 55,350 baht and gold ornaments at 56,150 baht per baht-weight. Gold spot prices were $3,680 per ounce, with the baht trading at 31.79 THB/USD. COMEX gold futures in New York also closed at all-time highs, supported by a weaker dollar and lower bond yields ahead of the US Federal Reserve meeting. (TNA)
