Gold Prices Highly Volatile! Gold Trade Association Prepares Emergency Meeting to Address Situation

The global and domestic gold markets continue to face severe ongoing volatility, with Thai gold prices still standing above 70,000 baht per baht of gold, despite significant recent declines. This volatility is considered abnormal and unprecedented in decades of gold trading. Jitti Tungsitpakdee, President of the Gold Traders Association, explained that the extreme price swings are primarily driven by speculative trading from large funds in futures and online markets, not actual gold transactions. He described the current situation as abnormal, with funds aggressively manipulating prices through futures markets, causing rapid price increases and decreases. Since the beginning of the year, gold prices have increased by over 19,000 baht per baht of gold, making some market correction expected. However, the speed and intensity of these movements have significantly impacted the market. Jitti warned short-term investors about high market risks, advising them to use 'cold money' and only invest a portion of their funds. He especially cautioned new investors against using borrowed money during such volatile conditions. The volatility has directly impacted gold shops, with price differences between international and domestic markets reaching 200-300 baht, creating operational challenges. The Gold Traders Association is preparing an emergency meeting to develop strategies for managing these unprecedented market conditions.