Core Insights - The influence of gold on the Thai baht has dropped to its lowest level in nearly two years, indicating that policymakers' efforts to curb the appreciation of the baht may be starting to take effect [1] Group 1: Correlation Data - The 60-day correlation between the baht and gold fell below 0.43 at the beginning of this week, marking the lowest level since November 2023 [1] - The 30-day and 45-day correlations also reached their lowest levels since February [1] Group 2: Policy Measures - Thai authorities are encouraging gold transactions to be settled in US dollars and are considering taxing physical transactions to weaken the connection between the baht and gold [1] - In June 2023, the 60-day correlation between the baht and gold was as high as 0.8, which contributed to the baht reaching a four-year high in September, putting pressure on exports and tourism [1] Group 3: Market Sentiment - The head of research at Kasikornbank stated that the risks associated with fiscal or monetary policy implementation serve as a moral warning, leading speculators to withdraw from bullish gold and bearish USD/THB trades [1]