Is gold good in 2568? Trading techniques + essential insights to know

Which Gold Investment Method Yields the Highest Profit

First, let’s discuss the common concern: why buy gold, and what approach ensures you don’t miss out on profits?

Investment Allocation: Experts recommend that gold should constitute 5-10% of your entire portfolio. If you have 1 million baht, invest about 50,000-100,000 baht in gold. Do not exceed 15-20% to diversify risk.

Timing of Purchase: Gold prices have a key support level at $2,447 per ounce. When prices reach this level or fall below $2,500 per ounce, it may be a good opportunity. Use Dollar-Cost Averaging strategy—gradually buy instead of investing all at once, dividing into 4-6 parts, entering as prices decline.

Appropriate Time Frame:

• Long-term (3-5 years or more): Gold is a good risk diversification tool, moving inversely to stocks and risky assets.
• Short-term (6-12 months): Be cautious of price volatility; plan clear exit points.

Risks to Accept: Although gold is a safe asset, prices can drop 10-15% during volatile markets or even 20-25% in financial crises.

Why Are Gold Prices Rising So Dramatically?

The market didn’t push gold prices up by chance; several key reasons drive this:

Large Purchases by Central Banks: This is the main factor. In Q1 2024, net gold purchases reached 290 tons, 36% above the average. China increased holdings from 1,900 to 2,500 tons. India plans to raise its share to 10% by 2025. These movements reflect major countries’ efforts to reduce reliance on the US dollar.

Geopolitical Situations: Conflicts in Ukraine, tensions in the Middle East, and uncertainties from US elections lead investors to seek “safe havens.” Gold is the asset everyone rushes to when the world is tense.

Interest Rate Policies: The US Federal Reserve is expected to cut interest rates in early 2025. Low interest rates make gold more attractive because the opportunity cost of holding it decreases.

Inflation and Fiscal Crisis: Inflation remains high, and the US budget deficit raises long-term concerns. Gold is considered a good “hedge” against inflation.

From Technical Data, Prices Could Rise Further

Let’s see what the charts indicate:

Gold hit a historic high of $2,790 per ounce (October 2024). Looking ahead:

Support and Resistance: Support at $2,447 per ounce (200-day moving average); resistance at $2,800 per ounce. When prices stay above support, the trend remains intact.

RSI Indicator: When prices pull back, RSI drops from overbought levels. This is a good sign that prices may rebound.

MACD Indicator: Approaching the Zero Line; if it stays above, it confirms a medium-term uptrend.

Trading Volume: Volume increases as prices rise, indicating strong investor confidence in this trend.

Should Leading Financial Institutions View Gold Favorably in 2025?

Goldman Sachs: Predicts gold will reach $2,700 per ounce by the end of 2024. Reasons include central bank demand and ongoing geopolitical risks.

J.P. Morgan: High interest rates are a pressure, but they expect the Fed to cut rates, allowing gold to continue rising.

FX Empire: If conflicts escalate or recession occurs, prices could surge to $3,000 per ounce in 2025.

Morgan Stanley: Believes prices will break through $2,800 next month.

UBS: Cautiously notes the rapid rise may require a pause before further gains.

Is Gold a Good Investment? Summary in a Clear Point

✅ Why Buy Gold:

• Safe asset during global uncertainties
• Good hedge against inflation
• Prices still have upward potential
• Central banks worldwide are buying

❌ Risks to Know:

• Prices may decline 10-25% during volatility
• Short-term returns are unpredictable
• Constant monitoring of geopolitical developments is necessary

🎯 Recommendations:

• Suitable for long-term investment (3-5 years)
• Allocate 5-10% of your portfolio
• Use dollar-cost averaging instead of lump-sum investment
• Do not invest with money needed immediately

Currently, gold seems to be a reasonable choice. However, invest cautiously and always remember— the higher the profit, the higher the risk involved.