Gold Glossary

96.5% Gold Bullion: The standard gold bar benchmark set by Gold Traders Association of Thailand, popular for trading in Thailand. 1 Baht weight of gold bar equals 15.24 grams.

99.99% Gold Bullion: International standard gold (LBMA Standard) with high purity, typically traded in kilograms and referenced against global market prices (Gold Spot).

Gold Bullion / Gold Bar: Gold bars for investment and accumulation purposes, having lower premium fees than gold jewelry, making them suitable for long-term investment.

Physical Gold: Physical gold that can be delivered, held, or redeemed for actual gold bars.

Troy Ounce: International standard weight unit for gold in the global market, where 1 Troy Ounce ≈ 31.1035 grams.

Baht Weight: Standard Thai weight unit for gold, where 1 Baht of gold bar = 15.24 grams and 1 Baht of gold jewelry = 15.16 grams.

Salung: Sub-unit of Baht weight, where 1 Baht = 4 Salung (1 Salung = 3.81 grams for gold bars).

Karat (K): Unit measuring the purity of gold, where 24K equals 99.99% pure gold and 96.5% gold equals approximately 23.16K.

Gold Spot: Global spot price for immediate gold delivery, quoted in US Dollars per Troy Ounce (USD/Troy Oz).

Bid / Ask (Offer): The buying price (Bid) and selling price (Ask/Offer) quoted by gold dealers.

Spread: The difference between the selling and buying prices; a narrower spread lowers transaction costs.

Premium / Discount: Price added (Premium) or deducted (Discount) from global spot prices, depending on local supply-demand and shipping costs.

Block Fee: Fabrication fee charged for minting gold bars.

Support / Resistance: Price level expected to attract buying power preventing further decline (Support), or level expected to face selling pressure hindering further gains (Resistance).

Sideways / Sideway Up / Sideway Down: Price moving in a narrow range without clear direction (Sideways), moving within a range with an upward bias (Sideway Up), or with a downward bias (Sideway Down).

Uptrend / Downtrend: Sustained upward trend or sustained downward trend in the market.

Breakout: Price breaking through a key support or resistance level, often indicating the start of a new directional trend.

Rebound / Correction: Short-term price recovery counter to the primary trend, or a pullback rebalancing prices after rapid gains or losses.

Sell on Fact: Profit-taking sell-offs occurring when widely anticipated news or events are officially realized.

All-Time High (ATH): Highest historical price level ever reached.

New High: Price reaching a new peak relative to a specified preceding period.

New Low: Price dropping to a new bottom relative to a specified preceding period.

Risk-On / Risk-Off: Market conditions where investors seek higher-yielding risk assets (Risk-On) versus reducing risk exposure to hold safe-haven assets (Risk-Off).

Risk/Reward Ratio: Comparison between potential risk losses and expected profits to evaluate position worthiness.

Bullish / Bearish: Market sentiment expecting prices to rise (Bullish) or fall (Bearish).

Fed (Federal Reserve): Central bank of the United States, responsible for setting monetary policy to maintain price stability and employment. Interest rate decisions directly impact the US Dollar Index, bond yields, and gold prices.

FOMC (Federal Open Market Committee): Monetary policy committee of the Federal Reserve setting policy interest rates and financial stance.

CME FedWatch Tool: Tool used to gauge market probabilities of Federal Reserve interest rate adjustments calculated from Fed Funds Futures prices.

Hawkish: Central bank stance emphasizing inflation control, favoring high interest rates or rate hikes, which generally pressures gold prices.

Dovish: Central bank stance leaning toward interest rate cuts or accommodative monetary policy, typically supporting gold prices.

Rate Cut / Rate Hike: Reductions or increases in policy interest rates by central banks affecting currencies, bond yields, and gold prices.

Interest Rate & Fed Funds Rate: Key policy rate set by the Fed. Rate hikes weigh on gold due to its non-yielding nature, whereas rate cuts serve as a positive driver for gold.

Dot Plot: Chart displaying Federal Reserve officials' individual long-term rate projections, updated quarterly to help markets anticipate future rate trends.

US Bond Yield: Return on government debt, particularly 10-year Treasury yields (US10Y). Rising bond yields increase the opportunity cost of holding non-yielding gold, causing sell-offs.

Quantitative Easing (QE) / Quantitative Tightening (QT): QE injects liquidity into the system (bullish for gold), while QT removes liquidity to tame inflation (bearish for gold).

Inflation Indices (CPI & PCE): Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) measure inflation. High inflation prompts Fed rate hikes, yet gold acts as an Inflation Hedge.

Non-Farm Payrolls (NFP): US monthly job gains data outside agriculture. Stronger-than-expected figures strengthen the USD and weigh on gold prices.

GDP (Gross Domestic Product): Total economic value of goods and services produced within a nation, used to gauge economic growth.

PMI (Purchasing Managers' Index): Indicator evaluating manufacturing and service sector activities. Readings above 50 indicate expansion, while below 50 signals contraction.

Unemployment Rate: Percentage of unemployed workers in the total labor force, used to assess labor market health and economic outlook.

US Dollar Index (DXY): Index measuring the USD value relative to a basket of major world currencies, historically inversely correlated with gold prices.

Geopolitical Risk & Safe-Haven Asset: Geopolitical tensions drive gold demand as a safe-haven asset during financial crises or military conflicts.

Central Bank Reserves & SPDR Gold Shares: Gold accumulation by global central banks and holdings shifts in the largest physical gold ETF (SPDR), reflecting institutional demand.

SPDR Gold Shares (GLD): Major physical gold ETF whose inventory fluctuations reflect broader investment demand in gold.

Gold ETF Inflow / Outflow: Capital flows moving in and out of gold ETF funds, tracking overall market investment interest.

PBoC (People's Bank of China): Central bank of China managing national foreign reserves; its gold purchasing decisions closely impact global market sentiment.

ECB (European Central Bank): Central bank overseeing monetary policy for Eurozone nations; its interest rate adjustments influence Euro exchange rates, the US Dollar Index, and gold prices.

BOJ (Bank of Japan): Central bank of Japan; interest rate updates affect the Japanese Yen, capital flows, and global precious metals trading.

BOE (Bank of England): Central bank managing monetary and financial stability across the United Kingdom.

Carry Trade: Investment strategy involving borrowing capital in low-interest currencies to invest in higher-yielding assets, bearing foreign exchange risk.

Stagflation: An economic condition marked by sluggish growth coupled with high inflation, complicating central bank monetary policy responses.

Recession: Significant downturn in economic activity spreading across the economy, often spurring demand for safe-haven assets.

Tariff: Tax imposed by governments on imported goods, impacting supply chain costs, inflation, global commerce, and investor confidence.

De-dollarization: Global trend towards reducing reliance on the US Dollar for commerce, settlements, or reserve assets, spurring increased allocation to gold reserves.

Inflation: Continuous rise in general price levels reducing money purchasing power, serving as a primary driver for central bank interest rates and gold prices.

Gold Futures (GF10 / GF50): Gold futures contracts traded on the TFEX exchange based on 96.5% gold standard.

Gold Online Futures (GO / GOM / GOZ / MGO): Gold futures contracts referencing global Spot Gold prices calculated in Thai Baht.

Margin / Leverage: Required minimum collateral and capital multiplier utilized to open derivative contracts.

Leverage: Utilization of derivatives to amplify returns relative to direct underlying asset investments due to lower required initial capital, which concurrently elevates investment risk.

Initial Margin (IM): Initial deposit collateral required to initiate a trading position.

Margin Call: Demand for additional collateral funds when total account margin falls below required maintenance levels.

Maintenance Margin (MM): Minimum equity threshold required in a margin account. Dropping below this triggers a Margin Call to replenish balance to Initial Margin (IM).

Long Position: Opening a buy position anticipating gold price increases.

Short Position: Opening a sell position anticipating gold price declines.

Mark-to-Market: Daily revaluation of futures positions based on current market settlement prices, adjusting account equity accordingly.

Open Interest (OI): Total number of outstanding active futures contracts in the market used to monitor investor activity.

Volume: Number of contracts traded over a specific timeframe, indicating liquidity and reinforcing market trend strength.

Settlement Price: Official closing price determined by the exchange for daily gain/loss valuation and contract final settlement.

Expiration Date: Final date on which a futures contract remains valid for trading or settlement.

Hedging: Using derivative positions to mitigate risk against adverse gold price fluctuations, such as shorting futures to hedge inventory.

Arbitrage: Simultaneous purchase and sale of gold across different markets to profit from pricing discrepancies, taking execution costs into account.

Speculation: Trading gold or futures contracts to profit from anticipated price movements, carrying risk of financial loss.

Credit Risk: Risk that a counterparty fails to fulfill contractual obligations, such as failing to settle payments or deliver physical gold.

Liquidity Risk: Risk of being unable to execute trades promptly at fair prices due to insufficient market participants.

Counterparty Risk: Risk that the opposite party in a financial transaction defaults on their contractual commitments.

Forced Liquidation: Automated or broker-initiated closure of trader positions due to breach of risk conditions, such as insufficient margin balance.

Long Position / Short Position: Opening buy positions expecting price increases versus opening sell positions expecting price drops.