Bangkok, YLG expects Thai gold to have a chance of reaching 45,000 baht. Central banks around the world are still stocking up on gold. Afraid of inflation Points out that Thailand is the number 1 gold importer in ASEAN and number 3 in Asia after China and India. It is revealed that in the first 2 months of 2024, it imported almost 30 tons.
Mrs. Pawan Nawawattanasap, Chief Executive Officer of YLG Bullion International Company Limited (YLG), said that the price of gold in the world market has increased since last year. It is expected that the US Federal Reserve (Fed) will cut interest rates. To want inflation to decrease This caused the gold price to gradually rebound and reach its highest point at the end of the year at 2,144 US dollars per ounce and then decrease. At the beginning of this year, the market opened at 2,062 US dollars per ounce and sideway for about 1-2 months until the end of March. Gold rebounds to the highest point again. And it continues to rise hotly, with YLG looking at a target of 2,30
0 US dollars per ounce. Within the first half of the year And if it passes, it is seen that it will reach 2350 US dollars/ounce.
As for the price of gold bars in the country, 96.5% opened the market at the beginning of the year at 33,550 baht per baht of gold. and rose to the area of ??39,700 baht per gold baht. As for gold jewelry, the price has exceeded 40,000 baht, which is also the stated target. However, it is possible to see the price reach 45,000 baht.
Factors affecting the price of gold come from the Russia-Ukraine conflict. and Middle East The US dollar weakened. Meanwhile, the central banks of each country are holding more gold. to prevent risk China is a country that has gradually reduced its holdings of the US dollar for 16 consecutive months. There is also Russia while in singapore Gold holdings increased by 33 tonnes in the past year Looking back at statistics from the past 10 years, it is found that each country’s central bank has increased its gold holdings. Especially in the past two years,
in 2022, up to 1,000 tons of gold were purchased and in 2023, they came to hold 2,030 tons of gold, which is a clear signal that each country’s central bank is reducing the role of the dollar in trade. and investment in the country itself (De-Dollarization) to prevent risk from inflation.
Global gold production capacity is approximately 3,000 tonnes. Global gold holdings are currently divided between central banks around the world, approximately 1,000 tonnes, China, nearly 1,000 tonnes, and India, another nearly 1,000 tonnes. The rest is owned by individual investors. There will be a recycling market where people sell and come back to buy, therefore, the gold cycle each year. Production capacity is approximately 4,000 tons. It can be seen that there are more buying than selling.
While the cost of importing gold from abroad (Premium), 1 ounce of gold has a premium value of 60 cents. The premium value in each country is not the same. Thailand is 2 US dollars, China is 10-30 US dollars, Vietnam 100. US Dollar,
while India accounted for 14% of trading volume.
Another factor that makes gold still interesting. That is, when the price continues to move up and then shrinks down, it will not be as hard as stocks or Bitcoin. The price will drop no more than 10% and is still a tangible asset. Trading tracking meets the needs of investors in times of economic volatility. If you want to sell, you can do it after passing each vertical point. and should buy in an amount that can accept the risk Because of YLG’s point of view Looking at the current price of gold, it is at a very high point. Therefore, it is necessary to use caution when investing.
From the beginning of the year until the present The price of gold has gone up about 10%, while the baht has gone up 7%. If you buy gold at the beginning of the year for 33,550 baht and sell it at a level where the gold price exceeds 40,000 baht, you’ll already have a profit of 17-18%. The fact that gold is constantly breaking records for the highest price. This makes it necessary t
o keep a close eye on various factors. that will affect the price of gold
However, the fact that central banks around the world hold large amounts of gold So far, no signs of selling are seen. This is because the US dollar is still in oversupply in the market. And people don’t believe in the dollar. But the dollar is still strong. Because the euro raised interest rates causing the euro to depreciate Meanwhile, China still has internal economic problems. As a result, the dollar continues to strengthen. and affected the Thai baht to depreciate
Thailand still imports more gold than it exports. In the first 2 months of 2024, it was found that it imported 29.347 tons of gold, an increase of 17.43%, while exporting 18.84 tons of gold, a decrease of 43% from the same period of the previous year, while statistics Over the past 10 years, Thailand has purchased an average of 63 tons of gold per year, ranking number 1 in Southeast Asia. and is ranked 3rd in Asia, after China with 1,000 tons and India with 900 tons. Pa
rt of the view is that Thai people have a variety of activities related to gold.
Source: Thai News Agency