Thailand’s foreign reserves hit record high above US$300bn as baht strengthens and gold rallies
The Bloomberg Dollar Spot Index, a key gauge of the US dollar’s strength, fell 0.7% this week—its biggest weekly decline since June. A weaker dollar typically supports gold and silver.
Gold is up about 70% this year, while silver has surged more than 150%, putting both on track for their strongest annual performance since 1979. The rally has been fuelled by increased central-bank purchases, inflows into ETFs, and three consecutive interest-rate cuts by the US Federal Reserve. Lower borrowing costs tend to support non-yielding assets such as precious metals, and investors are increasingly pricing in further rate cuts in 2026.
US President Donald Trump’s aggressive push to reshape global trade, along with threats to the Federal Reserve’s independence, also helped fuel the earlier surge. Demand has additionally been supported by so-called “debasement trades”, as concerns over rising debt spur investors to reduce exposure to government bonds and the currencies of issuing countries.
Gold’s strength is reflected in its swift rebound after slipping from a previous peak of US$4,381 in October, when the rally was seen as overheated. Heavy ETF buying has been a major driver of the latest move, with holdings in State Street’s SPDR Gold Trust, the largest precious-metals ETF, rising by more than 20% this year.
Silver’s rise has been even more dramatic, supported by speculative inflows and persistent supply tightness across major trading hubs, following a historic short squeeze in October that forced some investors to cover positions.
For similar reasons, platinum has surged in recent weeks—up more than 40% this month. Platinum prices have climbed above US$2,400 per ounce for the first time since Bloomberg began collecting the data in 1987.
Beyond strong physical demand, global supplies of platinum—used in the automotive and jewellery industries—are expected to be in deficit for a third consecutive year, largely due to disruptions in South Africa, a major producer.
Latest prices (Bloomberg)
Gold rose 1.1% to US$4,530.02 at 1.50pm in New York (18:50 GMT). Silver gained 7.5% to US$77.27, platinum rose 7.5% to US$2,425.36, and palladium jumped 11.7%.
