The price of gold could rise to Bt22,000 per baht weight or US$1,350 (Bt44,140) an ounce next year, driven mainly by uncertainties over US President Trump’s economic policy and the US Federal Reserve’s policy on benchmark-rate rises, the Gold Traders Association said on Tuesday.
Chairman Jitti Tangsithpakdi said that although the Fed would raise interest rates as the markets expected, the US dollar was likely to depreciate as markets still saw a slower-than-expected US economic recovery.
The baht is therefore projected to appreciate against the dollar to 32.62 next year, which would result in lower local gold prices.
The gold price is forecast to see a low of Bt18,500 per baht weight or $1,150 an ounce, he said.
Next year’s recommended strategy is short-term investment and avoiding long-term investment, Jitti said.
This year, short-term investors could reap a 10-per-cent gain from gold, he added.