Thai Gold Prices Fall Further Amid Global Sell-Off
Thai gold prices dropped again on October 24, with bars at 63,900 baht and jewelry at 62,625 baht buy prices. Analyst Sirilak Prakobphrapa attributes the decline to global gold falling for three straight sessions after SPDR sold nearly 12 tonnes, outweighing strong Indian ETF inflows. If international prices break below $3,940 per ounce, a sustained downtrend could follow, though short-term support may appear around $4,145-4,150.
Gold prices declined again, with the latest rates on October 24 showing gold bars at 63,900 baht buy and 64,100 baht sell, while gold jewelry traded at 62,625 baht buy and 64,900 baht sell.
Sirilak Prakobphrapa, analysis director at Hwa Seng Heng Gold Futures, revealed Thai gold prices are correcting downward after spot gold closed at $4,139 per ounce, marking three consecutive days of declines and a near one-week low. This followed the SPDR fund selling 11.97 tonnes of gold.
Despite the World Gold Council reporting Indian gold ETFs saw their highest inflows in seven months at approximately $466 million in September, with another $181 million in the first half of October, in tonnage terms these inflows remain well below SPDR's selling volume, maintaining downward pressure on gold.
Sirilak noted that while crude oil prices remain elevated around $110 per ounce — following reports of three oil tankers attempting to transit the Strait of Hormuz being damaged by explosives, reflecting tensions in the strait, plus Houthi rebels in Yemen claiming responsibility for attacks on Saudi oil facilities — Russian oil supplies are partially offsetting concerns. The uncertainty has caused gold's overall uptrend structure to break down after encountering excessive selling pressure (oversold). If global gold prices break below the $3,940 per ounce support level, it may signal a clear trend of continued declines.
Sirilak added that global gold is seeing increased selling pressure, but assesses that short-term buying support may emerge around the $4,145-4,150 resistance zone, which currently appears difficult to breach. If broken, the next resistance lies at $4,170.
Thai gold prices this October have already fallen 2,450 baht per baht-weight, turning the year-to-date performance negative by 850 baht compared to previous periods when gold had rallied to a historic high of 81,950 baht per baht-weight before correcting to the current low-60,000 range.
Why is gold falling?
Increased selling: Global gold broke below $4,000 per ounce and fell more than 4% in a week. US interest rates: Inflation concerns led markets to expect the Fed may keep rates high or hike further, pressuring gold. Expensive oil and Middle East tensions: Heighten inflation fears and prompt portfolio adjustments. Weak baht: Helps cushion Thai gold prices from falling as much as global markets.
