Bangkok: YLG Bullion International Co., Ltd. (YLG) has expressed optimism about the potential for gold prices to reach new highs in the second half of the year, with a target of $3,650, aligning with the projections of the World Gold Council, which anticipates a possible 10-15% increase.
According to Thai News Agency, Mrs. Pawan Navawatthanasap, CEO of YLG, noted that the current price adjustments are primarily due to short-term profit-taking after a strong performance in the first half of the year. The positive momentum has been influenced by investors selling US bonds, leading to accelerated bond yields, and the sell-off of the US dollar amidst market volatility. This environment supports gold prices, with the potential for reaching a new high, initially aiming for $3,500. Should this be surpassed, the subsequent target is $3,650. The World Gold Council suggests that if economic conditions such as stagflation and increased geopolitical tensions arise, gold could see a 10-15% increase.
Mrs. Pawan highlighted the accessibility of gold investment through platforms like the Paotang app, facilitating investment in YLG's Gold Wallet, or starting with a modest 100 baht investment via the Get Gold by YLG app. Despite recent price adjustments, attributed to short-term profit-taking following a 26% rise in the first half of the year, the potential for new highs remains. The weak US dollar and uncertain geopolitical climate have bolstered demand for safe assets like gold. The potential removal of Jerome Powell as Fed Chairman adds uncertainty to the US financial system, prompting a shift away from the US dollar and bonds, further supporting gold.
YLG maintains a positive outlook for gold in the year's second half, with the initial target of $3,500 per troy ounce and a potential rise to $3,650. The World Gold Council's projections suggest a 0-5% increase if the Fed reduces interest rates by 0.50% as anticipated. In a scenario of economic stagnation and severe inflation, coupled with rising geopolitical tensions, gold could climb 10-15%. Ongoing conflicts may continue to drive gold prices upward this year.
In the current period, gold prices are expected to fluctuate within a sideways range, awaiting new influencing factors. Short-term support is identified at $3,310-$3,320, with resistance at $3,375-$3,400. Domestically, gold is anticipated to range between 50,800 and 52,100 baht per baht of gold.
YLG encourages investors with limited initial capital to utilize services like the Gold Wallet via the Paotang app for buying and selling 99.99% gold bars in real-time, with flexible transaction limits. For long-term retail investors, the Dollar-Cost-Average (DCA) method is recommended to build investment discipline and leverage varying gold prices. The Get Gold by YLG app offers a minimum investment of 100 baht, catering to new-generation investors seeking real-time, secure transactions. The app enables identity verification and document submission, with approval within a day, allowing immediate gold trading, starting from 100 baht up to 80 kilograms daily.