Thai gold demand soared by 11% year-on-year to 14.5 tonnes in the third quarter of 2024, marking the highest growth in ASEAN for two consecutive quarters, according to the World Gold Council (WGC).

The surge coincided with a global rise of 5% in gold demand, reaching a record 1,313 tonnes valued over $100 billion, driven by high prices.

Investment demand doubled globally to 364 tonnes, with significant contributions from gold ETFs, particularly in Western markets.

Although global bar and coin demand fell by 9%, Thailand experienced a 15% increase, totaling 12.1 tonnes.

The uptick is partly attributed to a governmental digital wallet initiative to stimulate local economy, noted Shaokai Fan from WGC.

Globally, central bank purchases slowed yet remained firm at 186 tonnes.

Despite soaring gold prices averaging $2,474 per ounce, Thailand, along with Indonesia and Malaysia, reported double-digit growth due to geopolitical tensions and economic expectations.

While jewelry demand decreased by 12% in volume, its value rose by 13%.

The technology sector supported overall gold demand growth by 7%, partly driven by the AI boom.

Louise Street, WGC's senior markets analyst, emphasized the role of investment sentiment and FOMO driving demand, alongside potential interest rate cuts and geopolitical uncertainties influencing market dynamics.

Looking ahead, high investment levels and economic growth prospects could maintain elevated demand and prices.