Thai gold prices slump 1,400 baht, then slightly rebound

Gold prices in Thailand opened sharply lower on Thursday, according to the first update from the Gold Traders Association at 9.05am. The opening saw a steep 600-baht drop per baht-weight, triggering a wave of subsequent price adjustments throughout the morning.

In total, prices were revised 14 times during the day, first with ten consecutive cuts of 50 baht each, followed by three more reductions of 100 baht each. Altogether, these downward moves slashed the gold price by 1,400 baht.

However, a modest rebound followed later in the day, with four consecutive increases of 50 baht each, adding back 200 baht to the price. As of the latest update at 13.35pm, the prices stood at:

Gold Bar (96.5%)

Buy: ฿49,600

Sell: ฿49,700

Gold Ornament (96.5%)

Buy: ฿48,709.08

Sell: ฿50,500

Compared to the previous day's final rate on May 14, which saw 11 updates and a total drop of 300 baht, today's market activity reflects heightened volatility likely influenced by global factors.

Gold prices in the international market hit their lowest level in over a month on Thursday as investors turned cautious ahead of a key US inflation report that could shape the Federal Reserve's next interest rate move.

Spot gold fell 1.1% to $3,144.51 per ounce by 06:36 GMT, hitting its weakest point since April 10.

US gold futures were also down 1.3% to $3,146.20.

Adding to the pressure, improving trade relations between the US and China — including a mutual agreement to slash tariffs and a 90-day ceasefire in the trade war — weakened gold’s appeal as a safe-haven asset.

“The intraday outlook remains weak for gold, as optimism over US-China talks has dulled demand for safety assets,” said Jigar Trivedi, senior commodity analyst at Reliance Securities.

Markets are now focused on upcoming US Producer Price Index (PPI) data at 12.30 GMT, which follows this week’s softer-than-expected consumer inflation figures. A stronger-than-anticipated result could drive the dollar higher and push gold prices down further.

All eyes will also be on Fed Chair Jerome Powell’s speech later today, which may offer fresh clues on interest rate direction. Investors currently anticipate up to 50 basis points in rate cuts by year-end, potentially starting in October.

In related metals:

Silver slid 1.1% to $31.86/oz

Palladium lost 0.5% to $946.40/oz

Platinum edged up 0.2% to $977.75/oz