Gold prices predicted to hit record highs by 2024, says MTS Gold

MTS Gold, a local trader, predicted that gold prices are likely to skyrocket to new record levels of over 79,005 baht (US$2,300) per ounce and beyond 40,000 baht (US$1,164) per baht weight by this year. This forecast comes amidst anticipated adverse global economic situations.

Kritcharat Hiranyasiri, the President of MTS Gold, explained that the anticipated decline in interest rates and depreciation of the dollar opens up opportunities for gold, recognised as a safe-haven asset, to soar in value this year.

“The dollar has been depreciating as the market expects the interest rate hike cycle to end and several central banks around the world are waiting for the right moment to cut rates. Now is the time for investors to return to gold price speculation,”

Kritcharat also highlighted that recent geopolitical conflicts in multiple regions have contributed to the surge in gold prices, reported Bangkok Post.

“We must see whether the situation intensifies in 2024, but there is a chance for gold to surge further.”

The trigger for a swift upward trend in gold prices, according to Kritcharat, would be the Federal Reserve initiating a cut in rates. He mentioned that the US central bank recently indicated three rate cuts for this year, down from a 22-year high of 5.25% to 5.5%.

Kritcharat further noted that the political environment in the US could significantly influence gold price trends. Policymakers might decide to ease monetary policies to stimulate the economy and boost stock markets ahead of the presidential election this year.

“An easing of interest rates might be on the cards.”

He pointed out that the maturing of several medium-term US bonds, which will tighten financial market liquidity, is another factor to watch. This could potentially support the increase in gold prices this year.

Last year, gold prices rose by 11%. If a similar trend occurs this year, the prices could land in the range of 78,340 to 79,028 baht (US$2,280 to (US$2,300) per ounce, as per Kritcharat. He added that domestic prices, which surged by 13% in the previous year, are anticipated to rise by 11% this year to 38,000 to 40,000 baht (US$1,106 to 1,165) per baht weight.

Risk factors that need monitoring include strong US inflation, which could pressure interest rates to stay high, as well as the US economy. Kritcharat warned that if the US economy remains robust, the US dollar might appreciate, thereby causing a dip in gold prices.

Additionally, Kritcharat noted that if the conflict in the Middle East escalates, the prices of gold and other safe-haven assets are likely to increase.

In related news, stable gold prices in Thailand offer secure investment opportunities.