Gold price explosion: forecast for Thailand expects 75,700 baht!

Gold price explosion: forecast for Thailand expects 75,700 baht!

The gold markets in Thailand are currently on the verge of a remarkable rise: the price of gold has increased by an impressive 64%. According to YLG, which reports on the price development of precious metals, a cost range of 68,500 to 75,700 baht is forecast for gold projects in Thailand. CEO Pavarun Nawawattanapong sees a clear upward trend that should extend at least over the next two years. Not only purchases by central banks and pressing concerns about inflation play a role, but also geopolitical conflicts and trade wars, which are fueling demand for gold as a stable investment.

But that's not all: a decisive factor is the current interest rate cuts by the US Federal Reserve (Fed). Looking back, historical interest rate cuts over the past two decades show that gold prices typically rose sharply two years after such cuts. At the last rate cut in 2020, as the COVID-19 crisis gripped the world, gold prices increased by an average of 32% over 24 months. It seems like we could see this pattern happening now too, as the probability of a rate cut in October is 96.8%, while 81.1% is forecast for another 0.50% cut in December.

Geopolitical tensions and market movements

In recent weeks, gold markets have witnessed a significant rise, particularly following the release of Producer Price Index (PPI) data which showed a decline in inflationary pressures. Traders are increasingly positioning themselves for the possibility of further interest rate cuts by the Fed, further boosting confidence in the markets. According to current developments in the gold market, gold is also further supported by geopolitical tensions, particularly between Russia and Poland and between Israel and Iran. The People's Bank of China has also extended its gold purchases for 10 consecutive months, underscoring the diversification of global monetary authorities and increasing interest in gold as an investment.

This connection between geopolitical conflicts and the attractiveness of gold as a safe investment is abundantly clear. Gold is considered a reserve of value that remains independent of political or economic crises. Rising uncertainty in many parts of the world has fueled demand for gold as a hedge against economic fluctuations.

Market prospects and investment opportunities

Gold price forecasts are a staggering $4,435 to $4,900 per ounce. Investors who have a good hand can invest in gold and also use the YLG app “YLG Get Gold”, which makes it possible to invest in gold from as little as 100 baht. It is therefore open to everyone to benefit from this market-based increase.

How these developments will continue in the coming months remains exciting. The combination of geopolitical tensions, the dynamics of interest rate policy and the purchasing strategies of central banks creates an environment that continues to keep gold in high demand as a stable investment. It remains to be seen how investors will react to the upcoming publications and whether we will soon see the predicted highs in gold prices.

For further information and details on current gold prices and economic conditions, see coverage at YLG, Kitco and Capital check.