Gold set to soar this year due to global economic climate
Gold price is expected to hit a new high this year, with experts predicting it could surpass the Bt30,400 per baht weight it touched in 2020.
MTS Gold chief executive Nattapong Hirunyasiri said the price is currently moving in positive territory as its returns as of January 5 this year were 3 per cent despite the news of Covid-19 vaccines.
In the long term, he expected funds to flow into the gold market due to increasing inflation rate, low-interest rate and US President-elect Joe Biden's policies and measures to inject cash into the economic system.
"However, the gold price would move at around Bt28,000 per baht weight in the short term due to the baht's appreciation. Meanwhile, returns on gold this year are expected to be at 25 per cent compared to 30 per cent last year," he said.
Pawan Navawattanasap, YLG Bullion International chief executive officer, expected gold price to move in positive territory in the long term as SPDR funds had bought back gold at the end of last year.
She said gold price had gained positive sentiment from rising Covid-19 cases and the weakening US dollar, adding that foreign strategists predicted the dollar this year would weaken further.
"We expect gold price to move in positive territory for up to two years as the interest rate is expected to remain at a low level until 2023," she said.
She added that the price could hit US$2,000 if it can pass the resistance line at $1,965 per ounce.
"Investors who are able to tolerate risks can buy gold when the price drops to $1,921 per ounce and set up stop-loss point at $1,907 per ounce," she added.
