Gold surge set to continue as prices hit record highs

Gold's bullish momentum is expected to continue for at least two more years, according to local trader YLG Group, citing ongoing central bank purchases, persistent inflation concerns, intensifying geopolitical conflicts, and trade tensions.

- NUNTAWUN POLKUAMDEE NAREERAT WIRIYAPONG

Pawan Nawawattanasub, chief executive of YLG, said the most significant factor in the near term is the US Federal Reserve's interest rate cuts.

Historical data shows in the past three Fed rate-cut cycles, gold prices surged by an average of 32% over two consecutive years. However, in the current cycle gold has already soared by 64%, yet the bullish trend still has room to run, she said.

If these supportive factors persist, YLG forecasts gold prices could reach US$4,435-4,900 an ounce. Domestic prices are estimated at 68,500-75,700 baht per baht-weight, assuming an exchange rate of 32.58 baht per dollar.

With strong fundamentals and favourable monetary conditions, YLG believes the current bull run could extend well beyond expectations, potentially marking one of the most significant gold rallies in modern history, said Ms Pawan.