Gold demand dips, jewellery market sees prices fall to 32,100 per baht weight
Demand for gold jewellery in Thailand experienced a drop causing a significant price dip in today’s market, according to the local gold traders association. The gold bar was trading at 32,100 baht per baht weight, a reduction of 150 baht compared to yesterday’s closing price, as reported on the association’s official website at 9.24am today.
The 96.5% pure gold bars were traded at 31,500 baht for buying and 31,600 baht for selling. Meanwhile, the selling and buying rates for 96.5% purity jewellery-grade gold were positioned at 32,100 baht and 30,926.40 baht respectively. The global gold market price (Gold Spot) stood at US$1,887.50 per ounce.
In Thailand, gold jewellery is more than just a posh adornment. Aside from flashy, decorative bling, Thai people often buy gold as a sort of wearable emergency nest egg. In difficult financial times, those in need will sell or pawn their gold necklaces, bracelets, earrings, and rings to get some quick, much-needed cash.
Gold is often seen by many as a counter-market safety investment. When the world or local stock markets, or other intangible investments like crypto see an economic downturn, people turn to tangible physical investments like precious metals, gemstones or real estate.
Earlier this year, the World Gold Council (WGC) revealed that the global demand for gold from investors is witnessing an increase due to instability in the banking sector, geopolitical tensions, and a challenging economic environment, prompting individuals to turn to the precious metal as a safe-haven asset.
The WGC’s most recent Gold Demand Trend report revealed that demand for gold bars and coins rose by 15% year-on-year to 1.9 tonnes in the first quarter of 2023 from 1.6 tonnes a year prior. Meanwhile, domestic jewellery demand experienced a 6% decline during the same period, down to 2.1 tonnes.
Overall consumer demand for gold in the country increased by 3% from the same timeframe in 2022, reaching 3.9 tonnes, as noted in the report.
