Expert predicts gold will hit Bt30,000 this year


Experts are divided over whether gold will hit the magic price of Bt30,000 per baht weight by the end of this year, as the global price nears US$2,000 per ounce.

Kritrat Hiranyasiri, chairman of MTS Gold said gold prices could rise further as investors react to the US-China trade war, Covid-19 pandemic, and central banks' move to inject cash into the economic system.

"We expect the spot gold price to hit a new high of US$2,000 per ounce [soon]," he said.

"Also, we expect the SPDR Gold Trust, one of the world's largest exchange traded funds, to buy more gold because it currently holds only 1,249 tonnes – lower than its holding during the 2008-11 financial crisis of 1,320 tonnes."

He predicted the Thai price will hit Bt30,000 given that goldsmiths charge a Bt500 to Bt1,000 commission per baht weight and the price is currently at Bt29,550 per baht weight.

"Gold is considered a safe-haven asset because markets are volatile and the interest rate is low," he added.

However, Gold Traders Association chairman Jitti Tangsitpakdee said the price may already be at its ceiling.

"There is only a small chance that gold will hit Bt30,000 per baht weight, because gold funds worldwide will sell gold to take profit resulting in falling prices," he said.

The value of gold has rocketed by Bt7,000 per baht weight since the beginning of this year, generating returns of over 20 per cent.

"The price will only hit Bt30,000 if the global market price reaches US$2,020 per ounce," Jitti added.

"However, we recommend that investors don’t place too much hope in gold and sell some to take profit, otherwise they face the same despair as eight years ago [during the last gold boom]."