BANGKOK, Thailand – Ms. Tipa Nawawattanasub, CEO of YLG Bullion and Futures Co., Ltd. (YLG), reported that gold prices have been on a continuous upward trend, reaching a new all-time high of $2,714 per ounce on October 18, at 12:45 PM. Despite pressure from a stronger US dollar following better-than-expected US retail sales data, which rose by 0.4% compared to the 0.3% forecast, gold prices remained above recent lows, maintaining a strong positive outlook.
Although YLG had set an initial target of $2,700 per ounce, the current strong buying momentum, coupled with limited selling pressure, suggests that the price could continue to rise, potentially reaching $2,750 per ounce by the end of the year.
Four key factors driving gold’s surge include:
- Tensions in the Middle East: The death of Yahya Sinwar, a Hamas leader, and the prior killing of Mustafa Hariri, a Hezbollah commander, have escalated concerns. The potential response from Hamas-Hezbollah, backed by Iran, remains a key focus.
- Global Central Bank Policies: Central banks worldwide are expected to continue lowering interest rates next year, making gold more attractive, as it doesn’t provide interest returns and is unaffected by rate cuts.
- Gold ETFs: Gold-backed ETFs have seen net inflows for the fifth consecutive month. In September alone, $1.4 billion (18.4 tons) flowed into these funds, pushing total holdings to 3,200 tons.
- Uncertainty Surrounding US Elections: The possibility of Donald Trump returning to the presidency has raised global investor concerns, prompting some to turn to gold as a safe haven.
However, further assessment will be needed after the election results.
YLG noted that the current surge is driven by speculative buying, pushing gold prices higher. YLG advises investors to focus on short-term trades and follow the main trend. If prices remain above the $2,685-$2,666 support levels, they suggest buying, and then gradually taking profit around the resistance zone of $2,735-$2,750 per ounce.
For Thai gold, they recommend support levels at 42,100-41,800 baht per baht of gold and resistance at 42,850-43,100 baht, based on an exchange rate of 33.11 baht per US dollar.
