YLG indicates that gold is still hot, and in 2024, the price has already reached a new 5-month high, with a valuation after reaching the target of $2,500 per ounce. The momentum is still strong, the next target is $2,650 per ounce. If there are 3 important supporting factors, including the weakness of the US dollar from expectations that the Fed will cut interest rates at the September meeting, and geopolitical factors. Both in the Middle East, Russia and Ukraine are likely to become more serious, including concerns about a global economic slowdown. Both the United States and China, while the local movement of gold is limited due to pressure from the rise of the baht.
Ms. Pawan Nuwatanasap, CEO of YLG Bullion International Company Limited (YLG), said that in 2024, the price of gold has risen to new monthly highs 5 times, including the last month, when the price reached a record high of $2,510 per troy ounce (as of Monday, August 19). This price level is considered to have risen above the lower target set by YLG earlier at $2,500-$2,650 per troy ounce. However, YLG maintains its target for gold within this range. This is due to the behavior of gold when it rose to a new all-time high. After that, there will be a correction in the range of about $150-170 per troy ounce. If investors are interested in investing in gold during this period, if you already have gold, it is advisable to wait for an opportunity to sell it for profit. When the price adjusted to the maximum, we started to see significant selling pressure. Wait to buy again at the end of the correction period to accumulate buying pressure. But if gold has not weakened yet, it can be continued to be held.
As for the factors that lead to the rise in the price of gold during this period, they come from 3 main factors:
1. The US dollar continues to decline. After the market expected that the US Federal Reserve will definitely cut interest rates at its September meeting, with the market giving a 70% weight that the next meeting will cut interest rates by 0.25% and looking for another 30% weight to cut interest rates by up to 0.50% and after the Jackson Hole meeting on August 22-24.
2. The expansion of geopolitical conflicts From the tensions in the Middle East, which Israel continues to attack periodically, and in the midst of negotiations for a ceasefire in the Gaza Strip, there is also a state of conflict between Russia and Ukraine that has become more violent. After Russian President Vladimir Putin confirmed that he will not be able to negotiate with Ukraine again. After Ukraine invaded the Kosk region located on the Russian border
3. Investors are concerned about the slowdown in the global economy. In addition to the United States, there is concern from the Chinese side, which announced economic figures in July, and found that there are still signs of a slowdown, including China's GDP in the second quarter of 2024, which expanded by only 4.7%, less than expected. Which slowed from the expansion of 5.3% in the first quarter of 2024, which prompted the market to start looking at the need for central banks in various countries and the need to cut interest rates. In addition, the People's Bank of China approved a new quota for gold imports. With many banks in China in August after a two-month suspension, which is another good indicator for the gold market
For investment advice during this period in case of a new purchase and believes that we should wait for the moment when gold shrinks and buying pressure builds up again. Considering the support level at $2,450-2,385 per troy ounce. The resistance is estimated at $2,563-2,650 per troy ounce.
As for gold in the country during this period, the rise was not noticeable. Due to the pressure from the strengthening of the baht, which caused the gold in the country to increase in a limited way, and recently, the National Economic and Social Development Council Office released the GDP figures for the second quarter of 2024 with an expansion of 2.3%, which is better than expected. As a result, the baht continues to strengthen. After the depreciation of the US dollar, however, for 96.5% of the gold in the country, the support range is 40,250 – 39,200 baht per gold baht. The resistance range is estimated at 42,100 – 43,500 baht per gold baht. (Calculated using the average exchange rate over the past week at 34.65 baht)
During this time when the price of gold has risen sharply, the Get Gold app opened by YLG for investors who wanted to invest in gold with an investment of only 100 baht was highly acclaimed because it meets the investment needs of the new generation who can buy and sell spot gold in real time 24 hours a day, and can be easily accessed using a smartphone. Reliable Security Really profitable Applicants can confirm their identity and submit documents through the app. Know the approval results within one day. Gold can be bought and sold instantly Open for investment from 100 baht to 80 kilograms per day, interested parties can download the app from the App Store and Play Store or call 0-2678-9888#1.
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