Gold could rise to US$1,550-1,600 an ounce by year-end as further monetary easing by the US central bank and the endless US-China trade row induce a price rally, says MTS Gold Group.
Another 25-basis-point cut in the Federal Reserve's key rate and continuing trade disputes between the US and China are expected to be the main catalysts boosting gold prices in the international market, said chief executive Nattapong Hirunyasiri.
Domestic gold prices could rally to 23,000 baht per baht-weight under these scenarios, Mr Nattapong said.
Gold prices denominated in baht and US dollars reached a six-year high in August as the asset enjoyed safe-haven status amid rising geopolitical and economic uncertainties.
Further monitoring is needed of factors causing a potential financial crisis in Europe, namely Brexit and the European property market.
The European Central Bank's recent move to ramp up stimulus through a quantitative easing programme suggests a downbeat economic outlook in the euro zone and could support a gold rally to $1,900, Mr Nattapong said.
MTS has expanded its business to the Shanghai Gold Exchange (SGE), aiming to become one of the top three gold traders in Asia within three years.
The company has operated as a gold trading broker at the SGE for nine months and sees growth opportunities because the SGE is the world's largest gold trading exchange, Mr Nattapong said.
At present, 20% of the company's revenue comes from trading in overseas gold markets. The portion is expected to increase significantly in the future, as the company has embarked on gold trading on a global scale.
"Today we can connect with the SGE, which offers huge opportunity for growth in terms of trading volume," Mr Nattapong said.
The SGE has gold futures trading of 100 tonnes a day, compared with 100 tonnes a month on the Thailand Futures Exchange (TFEX).
MTS has a 40% market share of the TFEX's gold futures trading.
Mr Nattapong said MTS's trading volume for all types of gold products rose by 30% year-on-year in 2018.