Thai gold prices plunged sharply on February 6, falling THB 1,300 per baht from the previous close, as global precious metals markets faced heavy volatility.
The Gold Traders Association reported that prices dropped immediately after the market opened at 9:05am, pushing gold bar prices down to THB 72,000 per baht. The decline followed an exceptionally volatile session on February 5, during which prices were adjusted a record 102 times, resulting in a total drop of THB 2,400.
As of February 6, 96.5% gold prices stood at THB 72,800 per baht for ornaments, while gold bars were sold at THB 72,000, with a buying price of THB 71,800. This compared with February 5 levels of THB 74,100 for ornaments and THB 73,300 for gold bars.
Global markets also weighed on sentiment. Spot gold fell to around US$4,768 per ounce, while Comex gold closed at US$4,889.50, pressured by a stronger US dollar, widespread sell-offs, and market reaction to the nomination of Kevin Warsh as the new Federal Reserve chairman. Gold prices in Hong Kong dropped HK$1,720 to HK$44,200.
Meanwhile, silver prices plunged as much as 16%, driven largely by speculative trading and leveraged positions. Analysts noted that recent volatility in precious metals has been fueled more by investor speculation than physical demand, with some comparing the price movements to meme-stock-style trading behavior.