Gold prices rose for five consecutive weeks after investors worried about the US economy. The recession led to more gold holdings as a safe haven asset. And will it continue next week? Let’s go and see.
Ms Sirilak Pakotiprapa, director of analytics at Hua Seng Heng Gold Futures Co, Ltd, revealed to Nation Online that the direction of gold this week will go down. After adjusting up for 5 weeks in a row Because the Chinese market is closed due to the Chinese New Year.
which will be closed from Monday to Friday Regarding the number of COVID-19 cases in China, it began to recover from 2.85 million previously infected in January to 400,000, which is considered to have passed the peak. In addition, China opened up the country, leading to an increase in the use of gold.
At the same time, the US GDP must be monitored in the fourth quarter of 2022, which will be published on January 26, including the price index of personal consumption expenditure, or PCE, as it reflects the monetary policy of the US Federal Reserve or fading
Domestically, the Monetary Policy Committee (MPC) meeting on January 25 is expected to gradually raise interest rates by 0.25%. From the current interest rate of 1.25% to take care of the improving economy and hopefully tourism can help support the Thai economy to recover. and led to an appreciation of the baht
Additionally, this interest rate increase will cause the US interest spread to widen. compared to Thailand is narrower This will cause more foreign money to flow into the stock market. Exports this year It may not be good from the economic recession In the last 2 years, Thailand has lost its current account for 2 years in a row, but it is hoped that the recovery of tourism this year will make the current account positive.
For the price of gold this week, the support is estimated to be around 1,890 – 1,900 US dollars per ounce. The resistance is at 1930-1935 US dollars per ounce. If it could rise, we could see prices of $1,950 an ounce.
The positive factor for gold in the short term is the recession in major powers such as the US after the Fed raised interest rates consistently since last year to the current range of 4.25-4.5% which was raised twice more by 0.25% each to push inflation to 2% within the target range.
However, if gold prices rise, investors may take some profit. But if the price of gold falls, it should be accumulated gradually. and, if you go back to the statistics since October 2022 So far, gold has increased by $300 per ounce. Or an increase of 18%, so the price of gold can adjust to some extent.
