Photo courtesy of Bangkok Post

 

Gold prices are projected to maintain their upward momentum for another two years, as noted by YLG Group. This forecast follows ongoing central bank purchases, persistent inflation worries, and geopolitical tensions. Pawan Nawawattanasub, YLG’s CEO, highlights the US Federal Reserve's interest rate cuts as a key factor driving gold's surge.

 

In previous rate-cut cycles, gold gained an average of 32% within two years, yet in the current cycle, prices have already increased by 64%. Despite this, YLG anticipates more growth, predicting prices between $4,435 and $4,900 per ounce. Domestically, prices could range from 68,500 to 75,700 baht per baht-weight, given a 32.58 baht to dollar exchange rate.

 

Jitti Tangsithpakdi from the Gold Traders Association aligns with YLG’s view, projecting gold to reach $4,500 an ounce, equal to 70,000 baht per baht-weight. He noted that although spot gold dipped by 1.5% to below $4,300, it previously reached a high of $4,381.21. A stronger dollar has also made gold pricier for other currencies.

 

Veeravat Virochpoka, of FSS International, acknowledges a cautious yet optimistic approach by investors. He points to ongoing global economic uncertainties and US-China relations as factors boosting interest in gold as a safe asset. Gold typically thrives in low-interest environments, further supported by current monetary policy trends.

 

Goldman Sachs recently increased its December 2026 forecast for gold to $4,900 per ounce. Furthermore, the CME FedWatch Tool indicates a 96.8% probability of another Fed rate cut this month, with further reductions likely in December. Historical data shows gold performs well during easing cycles, corroborated by gains in past Fed rate-cut eras.

 

Since 1999, the Fed has navigated four significant rate-cut cycles. These began with the dot-com bubble in 2000 and were followed by the 2007 subprime mortgage crisis, leading to successive monetary easing. The most recent cycle started in 2024 as the US economy began recovering robustly.

 

Key Takeaways

• Gold prices have surged 64% this cycle, already outperforming historical averages.
• Ongoing Fed rate cuts and global uncertainties favor continued gold price increases.
• Projections suggest gold could reach up to $4,900 per ounce, marking a potential historic rally.

 

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  Adapted by ASEAN Now from Bangkok Post 2025-10-22

 

 

 

What goes up - will come down with a thud....

And how did that all work out ?

Bought my last 4 Bhat gold bars at 59450 Bhat still in the black 🙂

 

Thread title is news of yesterday.

Price now easily fell under 4000 (3987).

What happens in long term is for the crystal ball. More cannons roar, more (economic)  wars and the price will go steep.

Believe in Jamie Dimon: 10000 😁

I luckily sold on Oct 21, just a day after the peak (4380) and before downturn started.

12 minutes ago, KhunBENQ said:

I luckily sold on Oct 21, just a day after the peak (4380) and before downturn started.

 

"downturn" is a technical correction, which was to be expected after the excessive price increase over the previous 2 weeks.

So what did you do with the money of the sale? Put is in a 1%, before withholding taxes, savings account?