Following gold bullion reaching a fresh pinnacle surpassing $2,300 an ounce due to steadfast demand from central banks and escalated geopolitical tensions, local traders have upped their prognostications for both global and domestic gold prices to US$2,350 and 40,500 baht, respectively.
Heightened interest in potential interest rate reductions by the Federal Reserve this year propelled gold prices to $2,304.96 during early trading on Thursday.
At the local front, the Gold Traders Association (GTA) adjusted gold prices by 400 baht per baht-weight midmorning, reflecting gold bars trading at 39,950 baht and gold jewellery at 40,450 baht per baht-weight.
Pawan Nawawattanasub, Chief Executive of YLG Bullion International, now envisions gold hitting the $2,350 mark this year after originally projecting a target of $2,300 in the initial half. She highlighted the Federal Reserve’s mentions of potential US interest rate slashes this year that led to a weakened dollar and bond yields as a primary impetus for the price surges.
Ms. Pawan also emphasized strong gold demand emanating from China and global central banks, with Turkey spearheading purchases.
Recent data from the World Gold Council depicted ongoing central bank reserve increments in February for the ninth consecutive month, with China at the forefront of acquisitions followed by India and Kazakhstan.
Anticipating potential jewelry price escalations to 42,000 baht this year, GTA President Jitti Tangsithpakdi foresees an upward trajectory for gold ornament prices.
Focusing on the impact of the Israeli airstrike on an Iranian embassy complex in Damascus, Chutikarn Santimetvirul, Assistant Director of Securities Analysis at Phillip Securities, pinpoints the next resistance level for spot gold prices at $2,335. She noted a surge in demand for safe-haven assets like gold in response to the event.
Amid uncertainties concerning the US economy and prospective interest rate adjustments by the Federal Reserve, investor interest in gold as a hedge against potential risks has intensified, according to Kavee Chukitkasem, Head of Research and Content at Pi Securities. Institutional and Chinese investors are exhibiting a trend of diverting from dollar holdings to gold amid growing perceptions of dollar-related risks, contributing to the recent upswings in gold markets.
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