Bank of Thailand limits online gold trades amid price volatility
The Bank of Thailand is tightening regulations on online gold trading in an effort to reduce the impact of sharp price swings on the local currency.
The new rules, set to take effect in March, will cap online gold transactions conducted in Thai baht at 50 million baht ($1.6 million) per user per day, reports Yahoo Finance.
Any transaction above that threshold will require prior approval from authorities. Central bank officials stressed that the measures are not intended to curb gold trading itself, which remains popular among Thai investors. Instead, the goal is to improve transparency and oversight of rapidly growing online platforms. Assistant governor Pimpan Charoenkwan said the regulations are designed to address financial stability risks rather than restrict legitimate investment activity.
Volatility, loopholes and currency risks
Gold prices have surged dramatically this year, with international prices more than doubling and briefly topping $5,000 per ounce. In Thailand, prices climbed above 80,000 baht per baht-weight before retreating sharply, underscoring the volatility that has alarmed policymakers. Thailand has long lacked a comprehensive regulatory framework for gold trading, despite gold being a deeply embedded investment and savings vehicle in the country.
Governor Vithai Ratanakorn said more investors have turned to gold as the stock market has underperformed in recent years. Online trading platforms operated by traditional gold shops have amplified these flows, allowing large volumes to move quickly. When prices rise, mass selling can push gold exporters to convert U.S. dollars back into baht, strengthening the currency and creating sudden exchange-rate swings.
Scope of the new rules and next steps
The new regulations will not apply retroactively to investors who already held more than 50 million baht worth of gold before the end of January, allowing them to sell without extra approval. They will also exclude gold trades conducted in foreign currencies and transactions involving physical gold. However, online traders will be required to maintain detailed transaction records and report regularly to the central bank. Authorities say the measures will also help combat money laundering and improve monitoring of large financial flows.
Officials emphasized that gold trading remains culturally and economically important in Thailand. The central bank’s approach signals a balancing act between preserving a popular investment channel and safeguarding currency stability.
Recently we wrote that the rally in precious metals has entered what some analysts describe as a “dangerous phase.” On Thursday, gold dropped more than 7% to $5,100, while silver also corrected by around 8% from its recent highs.
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