Gold price growth set to moderate in coming year

Gold prices, which skyrocketed by about 70% this year due partly to speculation, are expected to ease in 2026 but continue an upward trend, backed by intensified geopolitical conflicts and strong central bank buying, say traders.

- NAREERAT WIRIYAPONG

Jitti Tangsithpakdi, president of Thailand's Gold Trader Association, said he expects bullion to notch a fresh all-time high in the first quarter of 2026 before hitting US$4,700-4,900 an ounce later in the year.

Domestic prices could potentially surpass 70,000 baht per bahtweight next year if the baht is not "too strong", he said.

Prices of gold, traditionally seen as a safe-haven asset, reached a new record high of $4,525 earlier this week amid a combination of global uncertainties, including USChina trade tensions, a weakening US dollar, and continued purchases from global central banks to diversify their reserves.

"The gold price soared by only about 8-9% 40 years earlier before it increased by nearly 30% last year. For the year-to-date, gold jumped by roughly 70%, and in October alone, it leaped 70%," said Mr Jitti. "This was unprecedented, unusual and too much of an increase, due mainly to speculation."