A New Era for Gold Trading in Thailand

In a bold move, major gold traders have united with the Thailand Futures Exchange (TFEX) to cement Thailand’s status as Southeast Asia's gold trading epicenter by 2026.

Establishing a Benchmark Gold Price

This week, TFEX and five leading gold firms signed a groundbreaking memorandum of understanding to introduce a Thai benchmark gold price, set to launch in the first quarter of 2026. This initiative aims to create a regional reference for wholesale transactions and various gold-related products.

Meet the Power Players

The five gold giants involved—Hua Seng Heng, MTS Capital, YLG Bullion International, Ausiris, and Gcap Gold—are not just local favorites; they collectively account for over 4 trillion baht (approximately USD 110 billion) in gold trading value within Thailand, dominating over 60% of the domestic market and establishing themselves as Southeast Asia’s largest gold trading group.

Transparent and Standardized Pricing System

The new benchmark introduces a standardized and transparent pricing mechanism, publishing reference prices twice daily—at market opening and closing. It will focus on 99.99% pure gold, quoted in both US dollars and baht, revolutionizing how transactions are conducted.

Breaking Free from Western Standards

"While Thailand is already a top player in the Asian gold market, we currently rely heavily on Western standards like the London Gold Fix," said Nuttapong Hirunyasiri, managing director of MTS Gold Group. As the London Gold Fix has long been the global standard, there's a clear need for a regional benchmark that better reflects Asia's rising influence.

Time Zones and Market Gaps

Hirunyasiri notes that the time zone difference means Asian markets often lack formal price references during London’s off-hours, forcing traders into unofficial agreements. "A Thai gold benchmark will not only bridge this gap but also bolster liquidity, enabling seamless transactions in baht and dollars," he added.

Rising Demand Fuels Growth

Tipa Nawawattanasub, CEO of YLG Bullion and Futures, pointed out that gold demand has skyrocketed in recent years due to lower interest rates, geopolitical tensions, and trade wars. In 2024 alone, gold prices surged more than 20%, with an additional 30% rise year-to-date in 2025, as central banks and investors continue to accumulate gold.

Strengthening Thailand's Gold Ecosystem

"Establishing our own benchmark reinforces Thailand’s ambition to be a genuine gold hub with a fully integrated ecosystem," Tipa emphasized.

Concerns Over Currency Stability

Despite the exciting developments, the Bank of Thailand has expressed concerns regarding potential currency volatility stemming from large-scale gold transactions. To address this, the central bank plans to meet with gold traders soon to evaluate the implications of increased trading volumes on currency stability.