Gold is an asset humans have used to store value for thousands of years. Today it is still a Safe Haven asset held by investors and central banks around the world.
Global Gold Price
The global gold price is traded in US dollars per troy ounce (1 troy ounce = 31.1035 grams). The symbol you will see most often is XAU/USD, or Gold Spot.
Factors That Drive the Price
| Factor | Effect on Gold Price (Generally) |
|---|---|
| Higher real yield | Down, because gold pays no interest |
| Stronger dollar | Down, because gold becomes more expensive for holders of other currencies |
| Fear, war, financial crisis | Up, as money flows into safe-haven assets |
| Central banks buying more | Up, as it is large and sustained demand |
| High inflation | Often up, as gold is used as an inflation hedge |
| Jewelry demand in China and India | Up when demand is high |
Central Banks Become Major Buyers
According to the World Gold Council, central banks worldwide bought more than 1,000 tonnes of gold net per year in 2022, 2023 and 2024 consecutively, a record high. The main reasons are to reduce reliance on the dollar and to diversify reserve risk.
Thai 96.5% Gold
Most gold in Thailand has a purity of 96.5% and is traded in units of baht (weight).
- 1 baht of gold bar weighs 15.244 grams
- 1 baht of gold ornaments weighs 15.16 grams (with an additional making charge)
- Prices are announced by the Gold Traders Association and can be adjusted several times a day
Thai gold prices depend on two main variables:
- The global gold price (dollars per ounce)
- The baht exchange rate: if the baht weakens, Thai gold becomes more expensive even if the global gold price is flat; if the baht strengthens, Thai gold may fall even if global gold rises
Some Thais wonder why global gold rises but Thai gold does not. The answer usually lies in the baht exchange rate.
Ways to Invest in Gold
- Gold bars and gold ornaments from gold shops that are members of the Gold Traders Association
- Gold savings through gold shop or bank apps
- Gold mutual funds through asset management companies in Thailand
- Gold Futures on the TFEX market (requires margin and involves leverage; you must understand the risks)
Read more: Interest Rates and the Market · Dollar Index
For education only, not investment advice. Figures change over time, so check official sources before making decisions.