As gold spikes, traders urge caution

Investors told to maintain discipline

- NUNTAWUN POLKUAMDEE NAREERAT WIRIYAPONG

Local gold traders are warning investors to shop wisely after bullion surged for the eighth consecutive week, buoyed by renewed fears of a US-China trade war, the ongoing US government shutdown, and increased prospects of a Federal Reserve interest rate cut.

Gold prices moved past US$4,100 an ounce to a fresh record high on Tuesday, bolstered by geopolitical and economic uncertainties, rate cut expectations, strong central bank buying and robust exchange-traded fund (ETF) inflows.

The local price soared by 1,150 baht per baht-weight in early morning trade yesterday. After nearly 30 price adjustments, gold bar was quoted at a record high of 64,200 baht, according to the Gold Traders Association, which described the rally as “a new all-time high almost every day”

Online gold trader Intergold cautioned the rapid ascent could spark short-term profit-taking.

However, investor enthusiasm remains strong, underscoring gold’s role asa popular asset in times of political and market turbulence.

The company forecasts a short-term target of $4,200 per ounce and a long-term goal of $5,000, which could lift Thai gold to 70,000 baht by 2026.