Gold to top $2,000 this year
Gold prices are expected to rise above US$2,000 by the end of the year, amid expectations of an economic slowdown in the US and Europe, intense geopolitical factors, and fewer interest rate hikes, says YLG Bullion & Futures.
Interest rate increases have recently made gold investments unattractive, but now that rates are nearing their peak and the US dollar is depreciating, such factors are supporting gold prices, said YLG chief executive Tipa Nawawattanasub.
"When interest rates turn downward, it will be an opportunity to invest in gold," she said.
Last week the US Federal Reserve announced a 0.25% increase in its policy interest rate to a range of 5.25-5.50%, the highest level in 22 years.
YLG expects the Fed to only raise interest rates once more this year. After that, there will be a period of three to five years during which the price of gold is expected to increase, according to YLG.
Gold is normally perceived to be a safe haven asset, with demand particularly high during recessions.
"Today, the global economy faces lots of uncertainties and only Asia has positive growth. Geopolitics, meanwhile, has intensified for both the China-US and Russia-Ukraine conflicts and need to be monitored," Ms Tipa said.
Therefore, it is possible that gold could reach new highs by the end of the year, she added.
If the gold price passes $2,079 an ounce by year-end, there is a chance it would continue to rise to $2,400 an ounce in the next resistance. Therefore, YLG advises investors to accumulate gold at $1,900 an ounce.
https://www.bangkokpost.com/business/ge ... -this-year
If it does top $2K it'll be much more on Thailand's manipulated gold markets which also factors in the USD/THB exchange rate to its own advantage.