Gold has fallen below 18,000 baht per baht-weight, continuing to lure bargain hunters into goldsmith shops to snap up the precious metal.
Buyers are flocking to purchase gold bars on Bangkok's Yaowarat Road, home to major goldsmiths, and transaction value reached billions of baht yesterday alone, Gold Traders Association president Jitti Tangsitpakdi said.
The price of gold bullion was down by 300 baht per baht-weight on Friday morning from Thursday's close, sending the selling price below the 18,000-baht threshold before bounding back by 100 baht later.
The buying and selling prices for gold bars were 17,900 and 18,000 baht, respectively, at yesterday's market close.
The baht's pullback to 35 to the US dollar for the first time since 2009 also helped local gold prices to pare early losses.
With buyers flooding Mr Jitti's Chin Hua Heng goldsmith shop, queue cards were issued in the early afternoon to cope with the heavy demand.
But the number of buyers still seemed fewer than on Monday, when the latest sharp fall in gold prices began, he said.
Gold extended its slump to a five-year low on the way to its longest string of weekly losses since 2012.
This week's 4.5% slide was the fifth straight drop and the steepest since last October.
Investors are dumping gold on expectations the US Federal Reserve will soon raise its policy interest rate.
Gold for immediate delivery at one point fell by 0.7% to US$1,083.33 an ounce in London, Bloomberg data show.
Investors are selling the metal from gold-backed funds at the fastest pace in four months.
Holdings in the products declined by 17.6 tonnes this week to the lowest level since 2009.
Mr Jitti said the physical gold market was more active than the paper market because physical gold investors were seeking to pile up bullion in anticipation of profits when the price ultimately recovered.
Those who invest in the futures market intend to make a quick profit and flee to the US, where economic growth is gaining momentum, he said.
The gold price decline is likely to continue due to the strengthening US dollar, but Mr Jitti does not expect a severe fall.
A technical rebound is the likeliest scenario after the recent dip, said Kamolthun Pornphaisarnvichit, head of research at GT Wealth Management.
He said investors were waiting for clues about the US policy rate's direction from the Federal Open Market Committee when it met next week.
Fed chairwoman Janet Yellen recently confirmed that the first interest rate hike in nine years would come this year.