Gold rush: Bullion prices hit record high, further increase forecast

Bullion prices have hit a new record high of over US$2,300 an ounce with sustained demand from central banks and rising geopolitical conflict. This led local traders to raise their forecasts for both global and domestic prices of gold to US$2,350 and 40,500 baht respectively.

The Gold Traders Association (GTA) updated the domestic price by 400 baht per baht-weight before noon, with gold bars trading at 39,950 baht and gold jewellery at 40,450 baht per baht-weight. Pawan Nawawattanasub, the chief executive of YLG Bullion International, now projects gold to reach US$2,350 this year after the price touched its original target of US$2,300 in the first half.

The price rallies have been attributed to the Federal Reserve’s statements regarding three potential US interest rate cuts this year, resulting in a drop in dollar and bond yields. Additionally, there is strong gold demand from…