Thai gold traders held emergency meeting as prices swung: Association’s latest measures

Gold prices in Thailand were extremely volatile on February 2, 2026, falling sharply and repeatedly throughout the day in line with global spot gold, which saw an unusually heavy sell-off.

The Thai Gold Traders Association reported 69 intraday price adjustments, with prices down as much as 3,050 baht. The latest quoted selling prices were 71,150 baht for bullion and 71,950 baht for jewellery gold, while spot gold stood at US$4,775 per ounce.

The sharp decline and rapid swings caused widespread disruption across the domestic gold market, affecting both investors and gold shop operators. As spot and local prices moved rapidly every 2–3 minutes, online gold trading systems were unable to cope with transaction volumes, causing applications to crash and preventing some investors from executing orders in time as prices slid.

The association also faced difficulties publishing benchmark prices. Jitti Tangsitpakdee, president of the Thai Gold Traders Association, told Krungthep Turakij that at certain points price announcements were delayed by almost 10 minutes because global prices were changing so quickly that it was difficult to determine a stable reference price in time — a situation he said had not happened before.

Investors “stuck at the top” after heavy speculation

The association said it had repeatedly warned over the past two weeks that short-term investors should exercise extreme caution, citing overly aggressive speculation and the risk of sudden price corrections. It warned of the possibility of margin calls if the market swung the wrong way.

It also noted heavy speculative activity in the futures market, saying large funds are key players influencing price direction and that trading volumes in futures markets can exceed the amount of physical gold available globally.

Gold shops under strain; emergency measures discussed on Feb 2 night

The impact was not limited to investors. Gold shop operators were also exposed to potential heavy losses, as the spread between the association’s announced buy/sell prices and actual market prices widened sharply during extreme volatility.

Jitti said the association held an emergency meeting on the night of February 2 with all relevant parties — including wholesale and retail representatives, online system providers and physical shop operators — to agree a joint response. The meeting also discussed improving the association’s pricing system to make price announcements more efficient during periods of severe volatility in overseas markets.

On proposals to introduce controls, he said there had been discussion of temporarily restricting trading — similar to a stock-market circuit breaker — if prices fell beyond a set threshold to limit broader damage. He said the idea required careful discussion to avoid unintended impacts on stakeholders and potential complaints. The association expected clarity after the meeting and said conclusions would likely be communicated on the morning of February 3.

He added that overseas markets were facing similar issues, including sharply higher premiums and, in some areas, emerging shortages as supply failed to meet demand, and said Thailand would monitor how international markets respond.

Analyst: Profit-taking and policy signals intensified the sell-off

Piriyapon Kongvanich, an investment strategist at Bualuang Securities, said gold was sold off after a strong rally that left the market technically stretched, triggering profit-taking.

He said policy factors added pressure, including news that US President Donald Trump had proposed Kevin Warsh as the next chair of the US central bank, prompting markets to reassess the “debasement trade” theme. That shift supported a stronger US dollar and weighed further on gold. He also said options-market mechanics resembling a gamma squeeze accelerated selling beyond normal levels.

In the medium term, he said gold remained supported by structural factors such as geopolitical uncertainty in an increasingly multipolar world, which has encouraged central banks to accumulate gold as reserve assets. He maintained a 2026 target of US$5,250 per ounce.

In the short term, he said gold could remain volatile amid ongoing profit-taking, and suggested gradually accumulating around a support area near US$4,400 per ounce.

Association’s latest measures (Feb 3)

 

The Thai Gold Traders Association has agreed to widen the buy-sell price spread for gold to 200 baht to cope with heightened volatility, and is upgrading its price announcement system to be faster and more “real-time”, aiming to reduce the gap between domestic prices and global markets and limit gold shops’ risk of losses.

Jitti Tangsitpakdee, president of the association, told Krungthep Turakij (Feb 3) that the association’s meeting on the night of February 2 concluded with emergency measures to address extreme gold-price fluctuations.

The key decision was to widen the spread between the buying and selling prices to 200 baht, citing sharp swings and a steep rise in prices. He said if the gold price falls below 50,000 baht, the spread will revert to the previous level of 100 baht.

He added that the association is also improving its pricing process by using technical systems to adjust prices more quickly. The aim is to make price announcements faster and more real-time, reducing the gap between global market prices and the association’s quoted prices. Over the past two weeks, prices have been adjusted on average every 3–5 minutes, and on some days there have been as many as 70–75 price changes.

He said the measures are intended to prevent gold shops from being put at a disadvantage due to operational constraints. Shops may not be able to update display prices at the counter quickly enough, yet still feel obliged to sell at the posted price to maintain credibility and trust, which he described as central to the gold trade.

In the digital era, he said, many investor-customers can track real-time prices constantly on their mobile phones. If a shop cannot adjust quickly, customers may rush to buy or sell immediately, increasing the shop’s risk of losses and potential complaints.

He noted that the association’s price announcements must be distributed nationwide and involve communication and data-entry steps that typically take 2–3 minutes, meaning shops often receive updates later than customers who are watching real-time screens. The association is therefore working to make its announcements more real-time. He added that temporarily halting trading would likely not be feasible because it would affect all stakeholders.

Jitti said current volatility can see gold swing by as much as 450 baht within five minutes, and on some days prices can rise by more than 1,000 baht within a few hours. He warned that weekends are especially risky because global markets are closed, yet prices can shift sharply when markets reopen on Monday. He urged gold shops to manage inventory carefully, warning that poor stock management could result in losses of tens or even hundreds of millions of baht.

He also cautioned investors — especially retail traders — not to overextend themselves. Those speculating in futures markets without sufficient funds to meet margin requirements may face forced liquidation and heavy losses.

He reiterated that investors should use “spare money” for gold investment so that, if they end up holding at higher levels, they can keep their positions without financial stress. He also urged caution against chasing prices when the market rises too fast, as sharp sell-offs can occur at any time.