Can you buy gold in the year 2568? An in-depth look at why investors are rushing to buy

In 2024, gold reached an all-time high of $2,790 per ounce, attracting the attention of investors worldwide. The question is Is it good to buy and hold gold? In 2025, it made a strong comeback. This article will analyze why there are still strong supports for gold prices to continue soaring.

Central Banks Worldwide Are Accumulating Gold

One of the most interesting factors is the entry of central banks into the gold market. In the first quarter of 2024, net gold purchases hit 290 tons, an increase of over 36% compared to the quarterly average, with China, India, and Turkey leading as major buyers.

This accumulation of gold is no coincidence. China increased its gold reserves from 1,900 tons to over 2,500 tons, reflecting a strategic effort to reduce dependence on the US dollar. Meanwhile, India plans to raise its gold holdings in reserves from 7% to 10% by 2025.

This trend indicates a structural change in the global financial system, meaning there is ongoing buying pressure from major global players.

Positive Factors from Uncertain Situations

Geopolitical tensions, such as conflicts in Ukraine and the Middle East, have led investors to seek safer assets. Gold, as a “safe haven asset,” has become a preferred choice.

Additionally, concerns over the US budget deficit and persistent high inflation levels make gold an excellent hedge for investment portfolios.

Interest Rate Policies Are Showing Positive Signs

It is expected that the Fed will cut interest rates in early 2025. This is good news for gold prices because when interest rates decrease, the opportunity cost of holding gold (opportunity cost) also declines.

Lower interest rates may also weaken the US dollar, providing an additional positive factor for gold prices in other currencies.

Leading Experts’ Outlook for Gold in 2025

Goldman Sachs has upgraded its forecast, expecting gold prices to reach $2,700 per ounce by the end of the year. Their team believes that demand from central banks and geopolitical risks will support prices.

J.P. Morgan, while more cautious, remains optimistic. Their analysts see that although high interest rates may exert short-term pressure, the expected rate cuts combined with strong central bank demand will support gold prices.

FX Empire has a bullish outlook. AG Thorson, their analyst, said that if tensions escalate or the economy shows signs of recession, gold could reach $3,000 per ounce in 2025.

Morgan Stanley and UBS expect gold to test around $2,800 per ounce, but UBS warns that a sharp rise might be overdone and could require a temporary correction.

Technical Analysis Overview

From a technical perspective, gold has a key support level at $2,447 per ounce (200-day MA) and resistance at $2,800 per ounce.

The fact that prices remain above support, despite some pullback, indicates that the bullish trend continues. The RSI index, which has cooled from overbought levels, signals room for further upward movement.

The MACD index is approaching the Zero Line, and if it can stay above this level, it will confirm a medium-term bullish trend.

Smart Investment Techniques in Gold

By Time Horizon

For long-term investments (3-5 years and beyond), gold helps diversify risk, as it often moves inversely to stocks.

For short-term investments (6 months-1 year), caution is needed due to volatility. Clear entry and exit points should be planned.

Appropriate Allocation

Experts recommend allocating 5-10% of your portfolio to gold. For example, if you have 1 million THB, invest about 50,000-100,000 THB, not exceeding 15-20%, to maintain balance and diversify risk.

Interesting Buying Opportunities

When gold prices approach support at $2,447 per ounce, it’s an attractive entry point. If prices fall below $2,500, it could be a good opportunity to gradually accumulate.

Use Dollar-Cost Averaging by dividing your investment into 4-6 parts and buying gradually as prices decline, rather than investing all at once.

Risk Management

Although gold is considered safe, there is still a risk of loss. In the short term, gold could drop 10-15%, or even 20-25% during volatile markets or crises.

For example, if you invest 100,000 THB, be prepared for the possibility that the value might temporarily fall to 75,000-90,000 THB.

Is Buying and Holding Gold Really a Good Idea?

Yes. Investing in gold has justified value in uncertain market conditions. However, success depends on:

• Honestly assessing your risk tolerance
• Not investing money needed for short-term expenses
• Making gold part of a long-term strategy
• Proper allocation and risk diversification

In a world full of volatility, gold remains a reliable anchor for investors seeking stability.