YLG reveals 4 factors that support global gold reaching a new high of $2,160, and looking towards the second half of the year, there is a chance of reaching $2,300, although there may be strong selling in the short term to make a profit.
Ms. Pawan Nuwattanasap, CEO, YLG Bullion International Company Limited (YLG), the price of gold in the global market has risen to a new all-time high of $2,160 per ounce. As a result, the price of gold has increased since the beginning of the year by more than 4.50%, which is an interesting increase this time that has occurred since March due to support from many factors as follows:
Revealing 5 important factors for predicting gold prices. What do I need to see?
Today (March 7, 2024) the price of gold in the country rose by another 200 baht, with gold bullion back at 36,050 baht.
Yawarat is almost broken. People flock to buy gold hoping to continue speculation after the price rose to a new record high
1. Monetary policy of the Federal Reserve (Federal Reserve) Although investors had earlier lowered their hopes of a Fed rate cut from a maximum of 6 times to the 3-4 times region, there was strong selling pressure on gold. However, the market has absorbed such factors. The price of gold has started to recover and there is also concern about the decline in the employment sector. Therefore, it is a supporting factor for the return of the gold price to vital movement.
2. Central banks around the world continue to hold more gold. Since 2022, central banks around the world have purchased more than 1,000 tons of gold per year, up from about 400-600 tons per year last year.
3. Geopolitical tensions Which leads to the flow of “de-dollarization” or reduced dependence on the US dollar used as international reserves. Or used in international trade. As a result, the demand for gold increased.
4. Gold has transformed from a physical asset into a digital speculative asset. Which leads to increased purchasing power from new investors. Especially since the outbreak of the Coronavirus Covid-19 onwards.
Ms Pawan said that after the gold price reaches a new high in the short term, there may be some selling pressure to take profits. But the long-term picture for gold in 2024 remains on an upward trend. The big goal for the full year, YLG, is still set US$2,300 per ounce This is because in the second half of the year interest rates fell. The market expects the Fed to continue its policy of keeping interest rates low for 2-3 years, so the big picture for gold for 2-3 years remains positive.
As for gold bullion prices in the country, 96.5% continued to reach their highest levels ever. The price reached a new high of 36,350 baht per gold baht. In addition to having the same support factors as gold in the global market, it also benefits from the depreciation of the baht near the 36 baht area.
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