Traders see gold hitting $3,800 an ounce

Mrs Pawan says Trump’s trade policies will make gold the ultimate refuge for central banks and the public.

- NUNTAWUN POLKUAMDEE NAREERAT WIRIYAPONG

Gold prices are on track to hit US$3,800 per ounce later this year amid mounting fears of a global economic slowdown, due partly to the unpredictable trade policies of US President Donald Trump, say local traders.

Spot gold extended sharp gains in Asian trading yesterday, soaring 1.8% to $3,373 an ounce by mid-afternoon, as investors exercised caution ahead of the Federal Reserve's policy meeting starting later in the day.

Pawan Nawawattanasub, chief executive of YLG Group, said declining confidence in US economic policy has weakened the dollar and strengthened BRICS currencies, creating a favourable environment for safe-haven assets, notably gold.

BRICS is an intergovernmental organisation that has expanded to comprise 10 countries: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.