Bangkok: Thai gold prices opened 1,300 baht lower following a sharp drop in global gold prices, despite the baht weakening to 31.67 baht per US dollar, reaching its weakest level in two weeks.
According to Thai News Agency, the Gold Traders Association reported that the opening price of gold today fell by 1,300 baht per baht compared to yesterday. The selling price of gold bars was 65,200 baht per baht, and the selling price of gold ornaments was 66,000 baht per baht, based on a gold spot price of $4,360 per ounce and an exchange rate of 31.55 baht per dollar. Yesterday, the COMEX (Commodity Exchange) gold futures contract for February delivery fell by $209.10 or 4.59%, closing at $4,343.60 per ounce, as investors sold off to take profits after the gold price surged to a high of $2,478.50 the previous trading day.
Analysts from High Ridge Futures stated that gold and all precious metals prices declined due to profit-taking after hitting record highs. However, they anticipate gold prices to remain positive as geopolitical tensions will continue to drive demand for safe-haven assets, particularly the ongoing conflict between Russia and Ukraine.
Kasikorn Research Center reported this morning that the Thai baht touched its weakest level in two weeks at 31.67 baht per dollar before recovering to 31.56-31.58 baht per dollar this morning. This is weaker compared to the previous day's closing level of 31.45 baht per dollar. The baht weakened due to profit-taking in the global gold market. In addition, selling pressure on the US dollar has partially slowed as the market awaits the release of the Federal Reserve's minutes from December 9-10 tonight.
For today's trading range, the initial estimate is 31.50-31.80 baht per US dollar. Key factors to watch include Thailand's November economic and financial reports, foreign fund flows, movements of Asian currencies and global gold prices, and position adjustments near the end of the year.
Mr. Poon Panichpibul, Money and Capital Market Strategist at Krungthai Global Markets, Krungthai Bank, believes the Thai baht will continue its strengthening trend throughout the first quarter of 2026. This is despite the recent weakening of the baht's strengthening momentum in the past two days, following a rapid and sharp depreciation in line with the sharp drop in gold prices. This reflects the high correlation between gold prices and the baht, meaning gold price movements continue to impact the baht's direction and volatility. Therefore, he emphasizes that market participants must closely monitor gold price movements until the Bank of Thailand's recent measures to mitigate the impact of gold prices become clearly visible.