The global gold price is expected to hit a new high of US$2,300 per troy ounce this year because of the possibility of US Federal Reserve policy rate cuts, surging inflation and geopolitics risks.
Some investors view gold as a safe-haven asset because of the likelihood of a Fed rate cut in the second quarter of this year, amid persistent high inflation and global geopolitical tensions.
YLG Corp expects the global gold price to continue to increase, reaching a new record high of $2,300 per troy ounce this year, said chief executive Pawan Nawawattanasap.
For the Thai market, demand for gold investment as a safe haven has continued to increase for a decade, especially following the pandemic.
From 2015-2023, Thailand averaged purchases of 63 tonnes of gold per year, the third-highest level in Asia behind China and India.
During the outbreak year of 2020, bullion was often sold out, leading gold demand in the market to contract by 81.5 tonnes or 275% year-on-year.
However, demand picked up to 37 tonnes in 2021 and 38 tonnes in 2022.
Mrs Pawan said YLG would continue to promote gold investment as a safe-haven asset amid economic uncertainties.
The value of gold savings owned by Thais on online platforms, including YLG, has continued to increase.
YLG partnered with Krungthai Bank (KTB) to increase channels for gold trading service through the Pao Tang application.
The service offers 99.99% gold trade, which is the global standard.
The partnership strategy supports gold saving among Thais, in particular the younger generation, she said.
"Thai gold savers aged under 40 investing in gold via all channels accounted for 40% of the total in 2022, rising to 60% at present," Mrs Pawan said.
Rawin Boonyanusasna, head of the global markets group at KTB, said the bank would continue to develop all types of financial and investment products to provide better access for Thai investors and savers though both offline and online channels.
Under the collaboration between YLG and KTB, a promotional campaign was organised to attract Thai investors in gold via the "Krungthai Gold Wallet" service on the Pao Tang app.