Thai investors eye gold boom as prices set to surge
Thai gold prices are expected to rise sharply next year, driven by global economic uncertainty, rising central bank demand, and stalled trade talks.
Thai gold trader MTS Gold Group predicts bullion will end 2025 at around US$4,380 (approximately 159,000 baht), just shy of the record US$4,379.13 seen in October. In Thailand, local gold prices are expected to hover between 67,000 and 68,000 baht per baht-weight, according to Keeradit Hirunyasiri, MTS Gold’s Chief Operating Officer.
So far this year, gold has seen a staggering 52% increase, as investors pile into safe haven assets amid intensifying global tensions.
Keeradit said demand remains strong due to persistent economic instability and uncertainty surrounding trade talks between major economies, especially the United States and China.
“If there is no meaningful progress, gold prices will have room to rise further.”
A growing shift towards de-dollarisation is also contributing to gold’s upward momentum, as countries increasingly look to reduce their reliance on the US dollar for reserves and cross-border transactions.
Another key factor is the US Federal Reserve’s expected delay in cutting interest rates.
“With rates expected to stay higher for longer, global investors are increasingly turning to gold as a hedge against prolonged monetary tightening and economic volatility.”
Central bank purchases continue to play a major role in supporting gold prices. Reserve managers across both emerging and developed economies are steadily increasing their gold holdings, reflecting long-term confidence in its value.
The outlook also remains bullish due to heightened global risk aversion. Concerns over a possible resurgence in US–China trade tensions, combined with broader geopolitical unrest and fragile global supply chains, are driving investor appetite for safe assets like gold.
MTS noted that the trend is likely to continue well into 2025, with investors viewing gold as a stable store of value in uncertain times, reported Bangkok Post.
For local investors holding gold bought at high prices, Keeradit offered a note of encouragement.
“Prices may rise further in the coming month or two.”
Keeradit added that those who’ve been holding onto losses could see an opportunity to sell at a profit if the upward trend continues.
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