YLG Bullion International Company has predicted that the local gold price could climb within the range of 28,700 baht to 28,900 baht, despite negative effects from the US Federal Reserve signaling a benchmark rate increase during its meeting this week.
The projection was made by YLG CEO Pawan Nawawattanasap, who surmised that people usually gift gold during the Chinese New Year, thereby driving gold prices closer to within the ceiling range. She also said prices are being supported by several positive factors, such as demand in safe haven investments following heavy contractions in both the US stock market and the crypto market.
She added that gold prices are being affected by tensions between the United States and Russia over Ukraine, despite the possibility of the US central bank signaling an interest rate hike to curb inflation.
Pawan nevertheless said local gold prices will likely stabilize due to the baht being able to maintain a rate above 33 to the dollar.
These factors contribute to global gold prices at the end of January settling at around 1,809 to 1,849 dollars per ounce, while local gold prices should be between 28,250-28,900 baht per 1 baht weight.
The results of the US Federal Reserve meeting can be expected within the next couple of days.