Thailand's Gold Investment Demand Surges to 10-Year High Amid Price Corrections

Thai gold investment demand surged to its highest level since 2019 in the second quarter of this year, driven by price corrections and growing interest among younger investors. According to the World Gold Council, Thailand's gold investment demand rose 10% year-on-year to 10.9 tonnes in Q2, outshining previous years.

The WGC attributed this increase to Thai investors taking advantage of buying opportunities when gold prices softened after record highs earlier in the year. This trend is also seen globally, with Asia recording the strongest regional inflows into gold-backed exchange-traded funds (ETFs), bars and coins. Central banks worldwide continued increasing their gold reserves, purchasing a net 289 tonnes in Q2.

The WGC expects Thailand and ASEAN to remain important gold markets in the coming years as access to gold investment products expands and more investors, particularly younger generations, enter the market. Geopolitical uncertainty, economic risks, and gold's role as a portfolio diversification tool are expected to keep investment demand supported.