Thailand has emerged as a shining star in Southeast Asia’s gold market, showcasing a remarkable 17% increase in gold demand during the first quarter of the year. A report from the World Gold Council reveals that this surge is the most significant growth among five countries analyzed in the region.
In total, consumer demand in Thailand reached 9.1 tons, marking a robust trend in the country’s appetite for gold. Meanwhile, neighboring nations such as Singapore, Malaysia, and Indonesia experienced more modest growth rates ranging from 5% to 8%. In a surprising twist, Vietnam faced a decline of 15%, painting a mixed picture across the region’s gold consumption.
Thailand’s inclination towards gold bars and coins has shown an impressive 25% year-on-year increase, totaling 7.4 tons. This shift underscores the Thai investors’ growing preference for gold as a safe-haven asset amid swirling uncertainties in the global economy. Louise Street, senior markets analyst at the World Gold Council, noted the tumultuous start to the year for global markets—characterized by trade disputes, unpredictable U.S. policy shifts, and rekindled recession fears. All these factors have contributed to a particularly shaky environment for investors.
In light of such challenges, it’s no wonder that the demand for gold in the first quarter has reached its highest levels since 2016, according to Street. Globally, gold demand—including over-the-counter trades—tallied 1,206 tonnes during the same period, achieving a slight increase of 1% year on year, despite gold prices surging past US$3,000 per ounce. Although the price may seem daunting for some, others see it as an opportunity to invest in a timeless asset.
In a world where investments can feel as volatile as a rollercoaster ride, isn’t it refreshing to find stability in shimmering gold?
What was Thailand’s gold demand in the first quarter?
Thailand’s gold demand rose to 9.1 tons in the first quarter, reflecting a 17% year-on-year growth.
How did the gold demand in Thailand compare to other Southeast Asian countries?
Thailand led the growth in gold demand, while Singapore, Malaysia, and Indonesia saw increases between 5% and 8%, and Vietnam experienced a decline of 15%.
What factors contributed to the increase in gold demand?
The rise in gold demand is attributed to investors seeking safe-haven assets amidst trade turmoil, geopolitical tensions, and recessionary fears, creating a highly uncertain market environment.
