Bank of Thailand's Gold Reserve Increase Sets Record
According to the latest quarterly report from the Bank of Thailand (BOT), in Q2 2026, the BOT increased its gold reserves by 10 tons, bringing total holdings to 250 tons, a new record high. The move is seen by the market as a strategic asset diversification to cope with global inflation and geopolitical risks. The BOT governor stated at a press conference that gold, as a safe-haven asset, provides stable value storage amid uncertainty over the Fed's policy shift.
Thai Gold ETF Inflows Double
Bolstered by the central bank's signal, domestic gold ETFs saw massive inflows. According to SET (Stock Exchange of Thailand) data, net inflows into gold price-tracking ETFs exceeded 120 billion THB in the first three weeks of July 2026, up 140% from a year earlier. The largest, TDEX Gold ETF (ticker: GLD), attracted over 80 billion THB, with AUM surpassing 500 billion THB. Analysts note that retail investors participating in gold via ETFs avoid physical storage costs and enjoy liquidity benefits.
International Gold Prices Fluctuate at Highs, SE Asian Demand Provides Support
Although spot gold fluctuated around $2,350/oz in late July, Asian markets performed strongly. A recent WGC report shows central bank gold purchases in SE Asia rose 35% YoY in H1 2026, with Thailand, Malaysia, and Indonesia as main buyers. Meanwhile, silver prices, driven by industrial demand recovery, hovered around $30/oz, but the gold-silver ratio remained at a historical high of 78x, suggesting potential catch-up for silver.
Outlook: Gold ETFs May Continue to Attract Inflows
The Thai Asset Management Association expects Thai gold ETF size to exceed 800 billion THB in H2. Continued central bank purchases, retail investment enthusiasm, and jewelry demand from tourism recovery will support domestic gold prices. However, watch for short-term corrections due to unexpected Fed rate hikes or USD strength. For risk-averse investors, gold ETF allocation remains cost-effective in the current environment.
