Thai Gold Prices Fall Sharply Amid Global Fund Selling Pressure

Key summary

Sirilak Pakopitprapa, Head of Analysis at Huaxing Gold Futures Co., Ltd., stated that Thai gold prices are gradually adjusting downward after the spot gold market closed at $4,139 per ounce. This marks a third consecutive day of decline and a new low in nearly a week, following 11.97 tons sold by the SPDR fund. While the World Gold Council reported record inflows into Indian ETFs in September (approx. $466 million) and early October ($181 million), these volumes remain lower than SPDR's sales in tons, weakening gold's upward momentum. High crude oil prices around $110 per ounce persist due to tensions in the Strait of Hormuz, where three oil tankers were reportedly hit by mines, with Yemen's Houthis claiming responsibility for attacks on Saudi oil supplies while Russian oil continues to supply the market. Analysts note that if global gold prices break below the support level of $3,940 per ounce, a sustained downward trend may follow. Short-term buying pressure is expected to return, with resistance levels identified at $4,145-$4,150 and subsequently $4,170. In October alone, Thai gold prices dropped by 2,450 baht per tael, resulting in a negative annual difference of 850 baht compared to previous highs near 81,950 baht per tael, with current prices hovering around the early 60,000 baht range.