Nowadays, Gold is at a very high value which is 30,000 baht per Baht but in the past gold price was around 10 thousands baht per baht. Let’s observe what factors caused the gold price to be higher than before and the price of gold 10 years ago compared to today’s. Also, a tendency of gold prices in the future. Let’s start.
One of the reasons for the high price of gold. Gold is the most wanted in 3 groups; investment group, jewelry group and manufacturing and medical industry group. Also the price of gold in Thailand depends on the Baht currency and domestic demand.
The direct impact on the price of gold such as the U.S monetary policy, the US dollar currency, oil price, war and the demand of gold. These factors cause inflation and if the inflation is rising, the gold price will rise too.
During the war, gold can be exchanged for goods or other items immediately. The decline in value of banknotes or stocks during the war has had a psychological impact on the economy and gold prices. If the war is over, the price of gold may also fall.
If interest rates are low, liquidity in the system will be so high that the value of banknotes will be reduced. Therefore, people will turn to buying gold to maintain their currency value.
Gold is one of the assets to invest beside stocks, cryptocurrency and funds. Gold prices are constantly going up or down. The trend of gold also depends on many factors, which can change at any time according to the situation.