Thai Gold Prices Fall as Global Spot Price Drops Below $4,139

Key summary

Gold prices in Thailand declined on October 24, with bar gold buy and sell rates at 63,900 and 64,100 baht respectively, and ornamental gold rates at 62,625 and 64,900 baht. Sirilak Pakopitprapa, Director of Analysis at Huaxing Gold Futures Co., Ltd., attributed the drop to a three-day decline following the global spot price closing at $4,139 per ounce, marking a near-weekly low after SPDR funds sold 11.97 tons. While Indian ETFs saw inflows of approximately $466 million in September and $181 million in early October, these volumes remain lower than SPDR sales. High crude oil prices around $110 per ounce and tensions in the Strait of Hormuz, including reported attacks by Houthis on Saudi oil shipments, contributed to inflation concerns and portfolio adjustments. Analysts note that if the global price breaks below the $3,940 support level, a continued downward trend is likely, with resistance levels at $4,145-$4,150 and $4,170. In October alone, Thai gold prices fell by 2,450 baht per tael, resulting in an annual negative difference of 850 baht compared to previous highs near 81,950 baht per tael. Factors driving the decline include increased selling pressure, US interest rate uncertainty due to inflation fears, regional geopolitical instability, and a weakening Thai baht which partially offset global drops.