BANGKOK, Thailand – Thai gold prices surged to a historic high on Tuesday, reaching 55,600 baht per baht-weight of gold jewelry, in line with the rising global gold spot price. According to the Gold Traders Association, gold prices adjusted 36 times throughout the day.
The final sale price for gold bars stood at 54,450 baht, while gold jewelry reached 55,250 baht. The intraday peak saw gold bars selling at 54,800 baht and gold jewelry at 55,600 baht, reflecting the global gold spot price of $3,496.50 per ounce and an exchange rate of 33.12 baht per US dollar.
Wachirawat Banchuen, Senior Market Strategist at SCB Financial Markets (SCB FM), noted that the recent rapid appreciation of the Thai baht is driven not by domestic economic strength, but by weakening confidence in US assets. He explained that the US dollar has been declining due to trade tensions and concerns over the possible dismissal of Federal Reserve Chair Jerome Powell. In the short term, the baht may weaken slightly, especially if the US reimposes tariffs and Thailand’s economy shows signs of slowing, potentially prompting the Bank of Thailand to cut interest rates in Q2.
In the longer term, however, SCB FM expects the baht to appreciate again, supported by a continued decline in the US dollar as global confidence in American assets wanes. Strong gold prices, viewed as a safe haven during times of market uncertainty, are also seen as a factor strengthening the Thai currency. Increased investment in gold ETFs and central bank purchases of gold worldwide have further bolstered prices.
If trade negotiations between Thailand and the US stall or if Powell is removed from office, volatility could rise. Should tariffs remain and domestic fundamentals weaken in the second half of the year, the baht could depreciate to a range of 35.00–36.00 baht per dollar. Conversely, a sharp fall in US Treasury yields following Powell’s dismissal might push the baht to strengthen near 32.30 per dollar. (TNA)
