From my personal notes

  • Thai people has the culture of buying gold.

  • When gold prices goes up, some Thai people will take profit by selling gold in exchange for THB. 

  • When more Thai people sell their gold in exchange for THB, it drives THB currency up.

  • As an export heavy and tourism driven country, a stronger currency is not always a good thing for Thailand.

Why Thai Baht correlating with Gold Prices is bad?

  • Gold is often the safe haven for economically downturn. It correlates inversely with stock market.

  • When gold price rises, it often signifies a weakness in US and global economy. 

  • As Thailand is an export heavy and tourism driven country. A downturn in global economy heavily affects both exports and tourism.

  • This is further worsen when gold prices correlates with THB, making exports and tourism even more expensive.