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Gold Price Momentum Fades, Possible 2-3 Year Consolidation

Gold Price Momentum Fades, Possible 2-3 Year Consolidation

Post Today•Economy•24m ago

Reader Briefing

Chaiyaporn Nomphitakcharoen warns that gold prices may enter a 2-3 year consolidation period as the 4,000 dollar level may be unsustainable.

  • •Chaiyaporn Nomphitakcharoen of Bualuang Securities believes gold prices may not stably maintain the 4,000 dollars per ounce level.
  • •A potential consolidation period for gold prices could last approximately 2-3 years.
  • •Gold demand is shifting, with a risk that reliance may move primarily toward central banks if retail demand from people, China, and India slows.
  • •Chaiyaporn Nomphitakcharoen views the personal price target for gold at around 3,500 dollars per ounce.

Overview

  • •Chaiyaporn Nomphitakcharoen suggests that the recent surge in gold prices may already reflect excessive expectations.
  • •Gold prices may lose momentum if demand from the general public and consumers in key markets like China and India decreases and central bank buying is insufficient to compensate.
  • •Geopolitical conflicts and war serve as drivers for gold as a safe-haven asset, but demand may drop if these situations resolve.
  • •Gold mine operators have production costs significantly lower than 2,500 dollars per ounce, yet some are hesitant to invest in new mines due to uncertainty about long-term price sustainability.
  • •Chaiyaporn Nomphitakcharoen notes that after sharp increases, assets often enter consolidation periods, which could last 2-3 years, citing past cycles of 4-5 years after prices hit 1,700-1,800 dollars.
  • •Chaiyaporn Nomphitakcharoen warns investors against chasing prices during high peaks and suggests that a shift in the US Dollar's global role may take around 20 years rather than 3-5 years.
  • •Chaiyaporn Nomphitakcharoen recommends Dollar-Cost Averaging (DCA) for those wishing to hold gold, provided they have an appropriate investment timeframe to withstand price volatility.

Full article content is available on the original source.

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Source: Post Today (Original)

Key Entities

Person

Chaiyaporn Nomphitakcharoen(ชัยพร น้อมพิทักษ์เจริญ)
Managing Director of Securities Business at Bualuang Securities Public Company Limited.

Organization

Bualuang Securities Public Company Limited(บริษัทหลักทรัพย์ บัวหลวง จำกัด (มหาชน))
A securities firm referred to as BLS.

Place

China(จีน)ℹ️
A country identified as a source of gold demand.
India(อินเดีย)ℹ️
A country identified as a source of gold demand.