BANGKOK – The gold price in Thailand reached a new all-time high three times in a single day on 21 March 2024. This confirms the upward trend of Thai gold prices since the end of 2022, which have already risen by more than 25 percent.
On that day, there were 7 price changes in total, resulting in a total increase of 800 baht for the day. This brought the price of 96.5-percent gold bars to 37,650 baht per baht, in line with the global gold price, which hit a new high of 2,222 US dollar per troy ounce.
Mr. Jitti Tangsitpakdee, President of the Gold Traders Association, told Khaosod on March 22 that the gold price has been rising continuously, and the sharp rise this time is not only due to the US Federal Reserve’s signal to cut interest rates three times this year but also because large investors have been buying gold continuously this time.
It is expected that the central banks of various countries will buy gold to hold as reserves, as it is a safe haven given concerns about the instability of the US dollar.
“This has never happened before in history, especially as it is only 3 months into the year and the price has already risen by more than 10 percent,” he said.
Mr. Jitti analyzed that the short-term trend of gold bullion prices is likely to reach 38,000 baht per baht of gold in the second quarter of this year and may even reach 40,000 baht if the Fed cuts interest rates, which is expected to happen in June this year. He recommends investors to buy gold when the price drops slightly.
Ms. Pawan Nawawattanasap, CEO of YLG Bullion International Co., Ltd. (YLG), said that for the Thai gold price to reach 40,000 baht per baht of gold, there must be a factor of the baht’s value. If it depreciates to 37 baht per US dollar, it is possible to see 40,000 baht.
The Ministry of Commerce said that during this period of rising gold prices, there have been complaints about the fraudulent sale of “counterfeit gold”, both gold bars and gold ornaments, which surged to more than 1,600 cases in 2023.
Mr. Naphinthorn Srisanphan, Deputy Minister of Commerce, explained that the ministry has commissioned the Gem and Jewelry Institute of Thailand (GIT) to test the purity of precious metals and the purity of gold using ultrasonic waves that do not damage the workpiece.
The GIT issues quality certificates to interested persons before buying and selling under the Buy With Confidence (BWC) project. The Ministry also works with trusted government agencies such as the Consumer Protection Bureau and the Domestic Trade Department.
The deputy minister also warned the public against buying gold through online channels where there is a risk of gold counterfeiting and urged gold sellers to strictly abide by the law. Failure to display the price tag is punishable by a fine of up to 10,000 baht. Selling goods at an unreasonably high price, hoarding goods or refusing to sell them is punishable by imprisonment of up to seven years or a fine of up to 140,000 baht, or both.
Using a scale that has not been certified by the Department of Internal Trade is punishable by up to six months’ imprisonment or a fine of up to 20,000 baht, or both. Tampering with the weighing elements of the scale is punishable by imprisonment of up to 7 years or a fine of up to 280,000 baht.
