Local gold trader MTS Gold forecasts that gold prices could reach new highs of US$2,300 an ounce and more than 40,000 baht per baht weight in 2024. The company president, Kritcharat Hiranyasiri, attributes this potential surge to unfavourable global economic conditions and a weakening US dollar.
The depreciation of the US dollar, along with expectations of a decline in interest rates, creates a favorable environment for gold, which is often considered a safe-haven asset. Geopolitical conflicts in various regions have also contributed to recent increases in gold prices.
Kritcharat Hiranyasiri identifies several key factors that could trigger a rapid rise in gold prices in 2024. A potential cut in interest rates by the Federal Reserve, as well as the impact of the US presidential election on monetary policies and stock markets, could significantly influence gold price trends. Additionally, the market is expected to see a reduction in liquidity due to the maturity of medium-term US bonds, further supporting gold prices.
While gold prices rose by 11% in the previous year, Dr. Kritcharat predicts a similar uptick in 2024, potentially putting prices in the range of $2,280-$2,300 per ounce. Domestic prices are also expected to rise by 11% to 38,000-40,000 baht per baht weight. However, he notes that strong US inflation or a robust US economy could pose as risk factors that may impact gold prices negatively.
Insight:
The forecasted increase in gold prices for 2024 indicates a growing interest in the precious metal as a hedge against economic uncertainty and geopolitical tensions. With the potential for a weakened US dollar and falling interest rates, investors may turn to gold as a safe-haven asset, driving up demand and prices. Furthermore, the impact of global events, such as the US presidential election and geopolitical conflicts, underscores the interconnectedness of political and economic factors in influencing gold prices. As the market continues to navigate these uncertainties, the outlook for gold prices in 2024 remains closely tied to ongoing developments in the global economy and geopolitical landscape.
