The rise of gold prices could continue if the war in Ukraine drags on and the baht is weakened, Jitti Tangsitpakdee, chairman of the Gold Traders Association said on Monday.
Gold shops in the Yaowarat area were packed with people queuing to sell their items of gold, as prices have risen by 1,850 baht per one baht weight since Russia invaded Ukraine on Feb 24, according to the association.
Gold jewellery prices topped a record 31,350 baht per one baht weight, an increase of 450 baht from the previous day.
The prices were adjusted 10 times on Monday and their latest selling price at 4.51on was 30,900 baht.
Mr Jitti said there is no telling how long prices will fluctuate.
He said fluctuations will depend on how intense the conflict situation in Ukraine develops.
If the fighting intensifies and is protracted, gold prices could go up to 32,000-33,000 baht per one baht weigh, he said. This is because the baht has also weakened, compounding the gold price spike, he added.
However, Mr Jitti said gold prices will suddenly drop if there are successful negotiations between Russia and Ukraine.
He warned people who speculate on prices and are looking to make short-time profits through gold trading should be wary of the highly volatile situation surrounding the conflict in the eastern European nation.
"They should monitor the developments because they are at risk of facing losses," Mr Jitti said.
The association chairman said he has also warned gold shops that are members of the association to minimise risks to their operations.
This year, gold prices have climbed to new highs. If combined with increases made during last month's Chinese New Year, prices have risen by 2,350 baht per one baht weight so far.