Gold trader bullish on gold price before year’s end – if 3 factors align
After reaching an “all-time high” 13 times this year, there is a high possibility that gold prices in the Thai market could reach 40,000 baht per baht-weight before year’s end, according to gold trader MTS Gold Mae Thongsuk Group on Friday.
Group chairman Kritcharat Hiranyasiri said several factors expected in the remainder of 2024 could contribute to further hikes in gold price. They include the tendency for the US Federal Reserve to cut the interest rate at the year end, the stagnating economies of the UK and Europe, and geopolitical conflicts.
“After the Fed’s interest rate slashing, probably by 0.75%, the US dollar would become weaker at year’s end, resulting in lower yields of bonds and prompting investors to focus on gold,” he said.
Kritcharat quoted the Gold Traders Association’s report as saying that from January 1 to May 14, gold prices have reached an all-time high 13 times, with the lowest price at 33,400 baht and the highest at 36,700 baht per baht-weight.
At 3pm on Thursday, gold bars were sold at 36,650 baht per baht-weight, while gold ornaments went for 37,150 baht per baht-weight –both are at an all-time high.
Nanmanat Piamthipmanat, chief investment officer at SCB Asset Management Ltd, advised that regardless of the price trend, investors could treat gold as an alternative asset and include it up to a maximum of 5-10% in their portfolio in order to reduce the risk from fluctuations in investment return.
“When the prices come down, be sure to include gold in your portfolio. It is an asset of low risk, high liquidity, and has several investment formats available,” she said.
