Gold loses more than 30% from January peak
The latest decline leaves spot gold more than 30% below its record high of US$5,595 per ounce reached in January, with expectations of persistently high interest rates adding pressure to prices.
Despite the sell-off, analysts do not necessarily regard the downturn as the end of gold’s longer-term investment appeal.
In the short term, prices are expected to remain volatile as investors respond to margin calls in equity markets and weaker physical demand from Asia.
Over the longer term, renewed central bank purchases could provide support if gold remains below US$4,000 per ounce, although the timing and extent of any recovery remain uncertain.
Investors weigh risks and buying opportunities
For investors who purchased gold at higher prices, the sharp decline has raised questions about whether to sell at a loss or hold their positions in anticipation of a recovery.
The outlook presented in the report favours avoiding panic selling where investors do not urgently require the funds, citing potential support from central bank demand.
For prospective buyers, the 1,550-baht price decline could offer an opportunity to consider gradual accumulation through dollar-cost averaging (DCA), rather than committing all available capital at once.
Under this approach, investors would divide their purchases into smaller amounts while monitoring whether international gold prices begin to establish a more stable base.
However, continued volatility in global equity markets, interest rate expectations and Asian demand means that further declines remain possible before any sustained recovery.
