According to YLG Bullion & Futures, gold prices will surge above US$2,000 by the end of the year, owing to anticipation of an economic slowdown in the US and Europe, intense geopolitical issues, and fewer interest rate hikes.
Interest rate hikes have previously made gold investments unappealing, but now that rates are nearing their top and the US dollar is falling, such factors are helping gold prices, according to YLG CEO Tipa Nawawattanasub.
“When interest rates fall, it will be a good time to invest in gold,” she says.
The US Federal Reserve raised its policy interest rate by 0.25% last week, to a range of 5.25-5.50%, the highest level in 22 years.
According to YLG, the Fed will only raise interest rates once this year. According to YLG, the price of gold will rise for the next three to five years.
“Gold is typically regarded as a safe haven asset, with demand peaking during recessions.”
“Today, the global economy faces numerous uncertainties, with only Asia experiencing positive growth.” Meanwhile, geopolitics have heated up in both the China-US and Russia-Ukraine confrontations, which must be closely observed, according to Ms Tipa.
As a result, she believes gold could reach new highs by the end of the year.
If the gold price reaches $2,079 per ounce by the end of the year, it could continue to increase to $2,400 per ounce in the next resistance level. As a result, YLG urges investors to stockpile gold at $1,900 per ounce.
“If you look at the macro level, you will notice that the gold price has been rising for three years in a row, despite the pandemic and the Russia-Ukraine war.” “Despite the fact that these situations have improved over the last year and interest rates have risen, gold has remained at a high level,” Ms Tipa added.
She noted that until the interest rate policy, which is a factor influencing the gold price, is removed, the period of price gains in gold is projected to last three to five years.
YLG continues to advise investors to allocate 5-15% of their whole investment portfolio to gold. Investors should not invest in gold beyond this level in order to prevent portfolio volatility.
Ms Tipa stated that investors can purchase gold through futures markets such as the Thailand Futures Exchange and the Chicago Mercantile Exchange. Investing in these derivative markets allows investors to profit when the gold price rises or falls.
Thailand has a significant gold market, and gold is highly valued in the country’s culture and traditions. Gold is commonly used for various purposes, including jewelry, investment, and religious offerings. In Thailand, gold is sold through various channels, including jewelry stores, gold shops, and financial institutions.
One of the most popular times for gold sales in Thailand is during the traditional Thai New Year festival, known as Songkran. During this period, it is a common practice for people to purchase gold for good luck and prosperity.
The price of gold in Thailand, like in most countries, is influenced by international gold prices and local market demand. Gold prices are typically quoted in baht (the Thai currency) per “baht weight,” where one baht weight is equivalent to 15.244 grams.
For the most current information on gold sales in Thailand, including prices and market trends, I recommend checking with reputable financial news sources, market analysts, or official Thai government websites related to the gold industry.