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Thailand's currency has received a boost this year from a rally in gold prices. But strategists warn that won't be enough to protect it as tariff risks and interest-rate cuts start to bite....
Thailand Joins China In Driving Gold Bull Market
By Jan Nieuwenhuijs of Gainesville Coins
Shedding its long-standing price sensitivity to the price of gold, Thailand is currently a gold buyer driving the price up, just like China. Present changes in the global gold market, in which pricing power is shifting East, could be a precursor to a transformation in the international monetary order. Possibly, trade in the East will settle through a system connecting local CBDCs, while any remaining imbalances are transferred in gold.
Pan Gongsheng, governor of the PBOC and Sethaput Suthiwartnarueput, governor of the Bank of Thailand (BOT). Courtesy BOT.
Introduction
Up until 2021, many countries in Asia were gold price sensitive for nearly a century: they bought when the gold price was steady or declining but swiftly turned into sellers when the price increased. During this period the price of gold was set in the West and the East dampened volatility, best demonstrated in my article “The West–East E...