Gold chaos grips Thailand as prices crash 12% after record highs, sparking panic selling, bargain buying and packed pawn shops, while the baht weakens, volatility surges nationwide and global markets suffer their steepest gold plunge since 1983.
Thailand’s gold market and its ubiquitous gold shops were gripped by a frenzy on Friday and Saturday as the global gold bubble appeared to burst. Prices fell sharply, drawing both buyers and sellers into the market as they placed opposing bets on its direction. At the same time, households that rely on gold as a financial instrument moved in force to pawn the metal at the highest available prices as the market slid. While it remains unclear whether the downturn will continue, the reversal has brought relief to Thai businesses and exporters, with a 2% rise in the dollar against the baht coinciding with the steepest global fall in gold since 1983.
There was a flurry of activity in Bangkok’s Chinatown on Friday, while similar scenes appeared nationwide. Gold shops reported steady crowds from morning until evening. This followed a sharp reversal in prices after record highs. On Thursday, gold had reached unprecedented levels. However, by Friday, the market turned decisively lower.
Gold fell by 12 per cent within hours of opening on Friday. Subsequently, losses continued through the day and into Saturday. As a result, price boards were updated repeatedly. In fact, prices were adjusted 75 times during Friday trading. Consequently, volatility dominated both retail and wholesale markets.
This abrupt decline triggered immediate reactions from holders. Many rushed to sell gold before prices dropped further. Meanwhile, other investors entered the market to buy at lower levels. Therefore, buying and selling occurred at the same time. Trading volumes rose sharply across key districts.
Chinatown pawn shops surge as households sell, buy and borrow amid gold’s sudden reversal in Bangkok
In Bangkok’s Chinatown, Athrdi Avenue became a focal point. Throughout Friday, gold shops remained crowded. At the same time, pawn shops reported long queues. Borrowers sought short-term cash at prevailing prices. Consequently, turnover increased across the district.
Some customers aimed to lock in profits made earlier in the week. Others sought to reduce exposure to further losses. As prices shifted rapidly, decisions were made quickly. Therefore, transactions were often completed within minutes. This pace reflected heightened uncertainty.
Notably, gold holds a distinct role in Thailand’s economy. It is widely used for gifts and decoration. More importantly, it functions as a household savings instrument. In particular, lower-income households rely heavily on gold holdings. As a result, price swings affect daily financial decisions.
Gold is often used during periods of financial strain. It also supports expenses during seasonal obligations. Therefore, sudden price movements have an immediate social impact. Consequently, pawn shops become critical outlets during volatile periods. This pattern was clearly visible on Friday.
Baht weakens as falling gold prices remove key support previously identified by the Bank of Thailand
At the same time, currency markets reacted to the shift in gold prices. On Friday, the baht weakened sharply against the US dollar. The dollar rose from 30.9 baht to 31.56 baht. As a result, pressure increased on the local currency. Trading reflected reduced support from gold prices.
Previously, the Bank of Thailand had noted a clear relationship. Rising gold prices had indirectly supported the baht’s value. However, falling prices removed that support. Consequently, the baht lost ground quickly. This confirmed the central bank’s earlier assessment.
This movement was closely watched by exporters. Similarly, parts of the business sector reacted to the change. A weaker baht altered short-term trading conditions. Therefore, currency shifts added another layer of market stress. The timing coincided with peak volatility in gold prices.
Meanwhile, local gold prices continued to decline on Saturday. Prices dropped another 1,200 baht per baht-weight. A baht-weight equals 15.2 grammes. Consequently, cumulative losses deepened over two days. Retail sentiment remained tense.
Thai gold prices slide further as traders adjust positions amid sharp corrections and heavy volatility
The Gold Traders Association released updated figures on Saturday morning. Buying prices for gold ornaments fell to 72,616.40 baht per baht-weight. Buying prices for gold bars declined to 74,100 baht. Meanwhile, selling prices were adjusted downward. These reflected ongoing corrections.
Specifically, ornaments sold at 75,000 baht per baht-weight. Gold bars sold at 74,200 baht. These levels marked further declines from Friday’s close. As a result, customers reassessed positions throughout the day.
On Friday, prices had ended higher despite intraday losses. Buying prices closed at 73,798.88 baht for ornaments. Gold bars closed at 75,300 baht. Selling prices exceeded 76,000 baht. Even so, volatility dominated the session.
Despite Friday’s drop, prices remained higher week-on-week. They were still up by 1,100 baht from the previous Friday. However, momentum had clearly shifted. Therefore, confidence weakened rapidly. Short-term expectations changed.
Global gold markets suffer historic correction as record highs give way to steep and sudden losses
The scale of the correction was severe. Gold fell by 6,100 baht from Thursday’s close. Thursday’s closing price was 81,500 baht per baht-weight. Consequently, the reversal erased gains within hours. Market participants responded swiftly.
Global markets mirrored the local decline. On Friday, gold recorded its steepest one-day fall since 1983. Heavy profit-taking drove the selloff. Meanwhile, liquidity tightened across commodity markets. Price pressure intensified.
By Saturday, spot gold prices dropped below $4,900 an ounce. Only two days earlier, prices had reached $5,602. Therefore, the reversal was historic in scale. Trading desks reported extreme conditions.
Market commentary focused on recent developments. These included changes in US monetary leadership. Broader macroeconomic flows were also cited. However, no single trigger dominated. The correction reflected overlapping pressures.
Analysts point to overdue correction even as gold remains on track for strong monthly gains
Suki Cooper of Standard Chartered Bank addressed the decline. She said the market had been due for a correction. She pointed to multiple contributing factors. Her comments aligned with broader assessments. Uncertainty remained high.
Despite the sharp fall, gold retained a strong monthly performance. Prices remained on track for a 13 per cent rise this month. This would mark six consecutive monthly gains. Therefore, longer-term trends were still positive. Short-term volatility, however, dominated.
Nonetheless, sentiment shifted abruptly over 24 to 36 hours. Precious metals declined together. As a result, confidence was shaken across markets. Trading conditions deteriorated rapidly.
At the same time, geopolitical developments were reported. A US strike force was positioned off Iran. Reports also referred to possible targeted raids. These events coincided with market volatility. However, prices continued to fall.
Safe haven status tested as gold and silver suffer record losses across global commodity markets
Gold continued to be described as a safe haven asset. Historically, it attracts funds during uncertainty. Yet prices still declined sharply. Consequently, traditional market patterns were disrupted. This added to instability.
Other metals suffered even deeper losses. Silver experienced a dramatic collapse. Prices fell as much as 34 percent. This marked the worst daily percentage drop in its trading history. Losses surpassed previous records.
The decline exceeded historic precedents. It was worse than the Hunt brothers’ collapse in the 1980s. Therefore, the session entered commodity trading history. Market stress was evident across sectors.
Capital losses were substantial. Nearly $10 trillion in market value globally was erased within 24 hours. This reflected the scale of the selloff. Consequently, risk exposure increased sharply.
Meanwhile, provincial markets showed similar reactions. In Uthai Thani province, pawn shops were busy all day. People arrived continuously to use their services. Activity remained steady from morning onward. Volatility drove demand.
Provincial pawn shops see heavy flows as gold volatility drives pawning, redemption and resale
Customers brought gold to pawn for cash. Others redeemed gold for resale. Some aimed to speculate on price movements. Therefore, pawn activity surged noticeably. Transactions continued without interruption.
On Friday, January 30, 2026, reporters observed conditions firsthand. The Uthai Thani Municipal Pawnshop was crowded. Lines formed throughout the day. Staff processed a constant flow of customers. Demand remained elevated.
Even after prices declined, interest did not ease. Gold traded at 78,890 baht per gram. Despite this, customers continued arriving. Volatility sustained engagement. Market attention remained intense.
Ms. Pattaya Thiansang commented on the situation. She manages the municipal pawnshop. She confirmed a sharp increase in customers. The surge followed recent price movements.
On Thursday, January 29, the shop was full all day. On January 30, crowds continued at similar levels. Therefore, the activity showed no sign of slowing. Demand remained strong.
Pawn values raised as customers seek cash flow, profit and debt reduction during volatile gold prices
Many customers pawned gold to increase cash flow. Funds were used for daily expenses. As a result, pawn volumes rose sharply. The shop adjusted operations accordingly.
Pawn values were raised to reflect gold prices. Adjustments matched current market conditions. This helped meet public demand. Consequently, service capacity was maintained.
Another group of customers followed a different strategy. They redeemed previously pawned gold. They then sold it at gold shops. The goal was profit or debt reduction. Redemption activity remained steady.
Some sought to reduce interest payments on loans. Others aimed to capture price differences. Therefore, redemptions continued daily. Flows moved in both directions.
Officials continued to monitor price direction closely. Prices showed a sharp downward trend. Near-term movement remained uncertain. Volatility persisted across sessions.
Volatile trading continues as households and investors react to falling prices and uncertain short-term direction
Some customers feared further declines. Others anticipated rebounds. These expectations drove ongoing trading. As a result, buying and selling continued without pause. Across Thailand, gold’s economic role was again evident. Price swings affected households directly. Pawn shops faced rising demand. Traders adjusted rapidly to conditions.
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Meanwhile, currency markets reacted in parallel. The baht reflected shifts in gold prices. Exporters tracked movements closely. Businesses revised short-term expectations. Overall, markets moved quickly and forcefully. Record highs were followed by steep declines. Activity surged across sectors. The adjustment remains ongoing.
Undoubtedly, business leaders in Thailand, and in particular exporters, will be hoping that the break in this latest run on gold will see markets return to normal. The 2% rise in the dollar’s value against the baht will be welcomed. At the same time, there is a feeling that the fall in gold may indeed be a sign of a more optimistic outlook for the world order and the economy.
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