Analysts expressed optimism that gold prices have a chance to rise in the long term after domestic prices plunged by 800 baht per baht weight on Thursday, mainly attributed to the dollar strengthening.
The Gold Traders Association (GTA) reported the price of domestic gold fell sharply by 800 baht to 43,150 baht per baht weight as global prices dipped after Republican Donald Trump won the US presidential election.
Changes to US economic and political policies following the victory have caused the dollar to strengthen and bullion to fall, noted GTA.
Hua Seng Heng Gold Futures said global gold slipped below US$2,700 an ounce, down $85, after Trump won the election to become the 47th leader of the US.
Spot gold was quoted at $2,657.65 per ounce at after hitting its lowest level since Oct 15 earlier in the session.
Bullion hit a record high of $2,790.15 last week and has lost more than $130 since then. US gold futures shed 0.4% to $2,665.20.
"The Republican Party's policies are expected to improve US economic growth, causing the dollar to strengthen the most in four months, which it is a negative factor for gold prices," the gold trader said in a research note.
Even though the ballot count is ongoing, the Republicans are likely to win a majority in both the Senate and House of Representatives, making US politics more stable, said Hua Seng Heng.
The trader anticipates gold prices will continue to decline in the short term.
"However, Trump's policies are expected to have a positive effect on gold in the long term, driving gold prices to rebound and surge after this," said Hua Seng Heng.
The trader recommends investors buy domestic gold bars at the support levels of 43,150 and 43,000 baht.