Thai Gold Price Hits Record High; Silver Industrial Demand Prospects Bright

Thai Gold Price Hits Record High; Silver Industrial Demand Prospects Bright

On July 28, 2026, the international precious metals market saw a new wave of gains. Spot gold broke through the $2,400 per ounce mark, reaching a high of $2,412, the highest level since this month; silver also strengthened, stabilizing above $31 per ounce. Thai domestic gold prices surged accordingly, with gold bar prices breaking through 42,000 Thai baht per baht (15.244 grams) for the first time, setting a new record. Market analysts believe that a weaker dollar, heightened geopolitical tensions, and continued central bank gold purchases are the main drivers behind the gold price rally. In addition to its safe-haven properties, silver also benefits from strong demand from solar, 5G, and other green technology industries, with promising future potential.

International Gold Price Breaks $2,400; Thai Gold Market Reacts in Sync

As of this writing, spot gold was at $2,408/oz, up 1.2% on the day; the COMEX August gold futures contract settled at $2,415. Data from the Gold Traders Association shows that the benchmark gold bar price was raised to 42,250 baht (buying) and 42,350 baht (selling) per baht, up 350 baht from the previous trading day. Ornamental gold prices ranged between 43,250 and 43,350 baht. Gold shops on Yaowarat Road in Bangkok's Chinatown saw queues as investors sold at highs to take profits, while some people continued buying due to wedding needs or value preservation.

Three Drivers of the Rally: Weak Dollar, Safe-Haven Wave, Central Bank Buying

• Weak US Dollar Index: Due to market expectations that the Fed may cut rates again in September, the dollar index fell to 101.3, a three-month low. A weak dollar environment directly boosted the appeal of dollar-denominated gold.
• Geopolitical Tensions: The Middle East situation is tense again, the Russia-Ukraine conflict remains unresolved, and the South China Sea dispute has intensified, driving safe-haven funds into the precious metals market. SPDR Gold Trust ETF holdings increased by 15 tons this month, indicating strong bullish sentiment among institutional investors.
• Continued Central Bank Buying: The World Gold Council's latest report indicates that global central bank gold purchases reached 289 tons in Q2 2026, up 24% year-on-year. Although the Bank of Thailand (BOT) has not disclosed its latest buying moves, analysts generally believe that Southeast Asian central banks continue to increase gold holdings to diversify foreign exchange reserves. Thailand's current gold reserves are about 244 tons, accounting for about 7% of its foreign exchange reserves.

Silver: Green Energy Demand Becomes New Pillar

Compared to gold, silver's gain was more pronounced today, with spot silver reaching $31.45/oz, up 2.1%. Apart from safe-haven inflows, the main reason is the continued optimistic outlook for industrial demand. According to the Silver Institute, global industrial demand for silver is expected to grow 12% to 720 million ounces in 2026, with solar photovoltaic panels accounting for over 20% of silver usage. The Thai government is actively promoting the green transformation of the Eastern Economic Corridor (EEC), planning numerous solar power projects, which has driven up domestic silver imports. Trading volume in SET Silver Futures surged to 23,000 contracts today, up 40% from the daily average.

Analysts point out that silver has both safe-haven and industrial attributes. The current gold-to-silver ratio is about 76:1, still at a historical high, suggesting silver is relatively undervalued. If the global economic recovery accelerates and industrial demand further rebounds, silver prices could catch up, with a target price of $35.

Industry Views and Trading Strategies

Gold Traders Association President Kittiphan said: "Short-term gold prices may fluctuate due to profit-taking, but the medium- to long-term bullish trend remains unchanged. Investors may consider buying on dips and watch US employment data and Fed interest rate decisions." He also reminded that changes in the baht exchange rate could affect domestic gold prices; if the baht appreciates, domestic gold price gains may be limited.

For silver, Citibank's latest report rated it as "Preferred Buy" with a target price of $32. It recommends investors allocate through gold ETFs (e.g., GLD) or silver ETFs (e.g., SLV), and also watch precious metal-related stocks in the Thai stock market, such as Thai Mining (TMIN) and Thai Gold & Jewelry (TK), but be aware of volatility risks.

Risk Warning and Market Outlook

Despite the hot precious metals market, investors still need to be aware of potential risks. First, if the Fed unexpectedly pauses rate cuts or sends hawkish signals, the dollar may rebound, weighing on gold prices. Second, if geopolitical tensions ease, safe-haven demand could cool, triggering a rapid correction. Third, the premium on Thai domestic gold prices is too high, creating arbitrage pressure. Overall, based on global uncertainty and monetary easing expectations, the outlook for gold and silver remains bullish, but chasing highs in the short term requires caution. Investors should allocate in batches according to their risk tolerance. (End)