Bangkok: YLG Bullion and Futures Co., Ltd. has forecasted that gold prices will significantly rise by 9% in 2026, potentially reaching their target ahead of schedule.

According to Thai News Agency, global gold prices have already increased by 9%, while Thai gold prices have seen a nearly 7% rise, aided by the strengthening Thai baht. International financial institutions anticipate target prices ranging from $4,900 to $5,000 per ounce or higher.

Ms. Thipa Navawattanaprasert, CEO of YLG, disclosed that from the start of 2026 until January 20, the global gold price has surpassed $4,700 per ounce, marking an increase of over 9% from the opening price of approximately $4,321 per ounce at the beginning of the year. This rise in just 20 days has been quicker than expected, with price gaps appearing every Monday, indicating tension during weekends. Thai gold (96.5% gold bars) has reached a new high of 69,300 baht per baht weight, an increase of almost 7% since the beginning of the year.

The surge in gold prices is driven by several key factors, including concerns over Trump's policies. His proposed annexation of Greenland and potential trade war with Europe, coupled with tensions with Iran, have weakened the US dollar as capital moves to other regions and gold is sought as a safe-haven asset. Additionally, central banks worldwide continue to purchase gold. YLG advises a long-term dollar-cost averaging (DCA) strategy, with short-term investments also considered. Key support is noted at $4,660 per ounce, and resistance is at $4,720-$4,750 per ounce, with a target price of $4,900-$5,000 per ounce for the year. Futures contracts are suggested as an alternative investment during high gold prices, requiring only 10% of the initial investment.

The rapid rise in gold prices is attributed to three main factors:

1. President Trump's actions regarding Greenland and the risk of a US-EU trade war. Following Trump's threat to impose tariffs on European countries for blocking the US purchase of Greenland, regional tensions have heightened, prompting investors to seek gold as a safe haven. Despite emphasizing diplomatic negotiations, Trump has not ruled out a military takeover.

2. The weakening of the US dollar and potential Fed interest rate cuts. The US dollar index has dropped sharply due to concerns that the Federal Reserve may cut interest rates more than anticipated, following changes within the Fed, including the departure of Chairman Powell.

3. Central banks worldwide are increasing gold reserves. Many central banks, particularly in China and Russia, are shifting away from the US dollar to purchase gold as a hedge against US political uncertainty.

According to a YLG survey, most international financial institutions have projected gold prices to be between $4,900 and $5,000 per ounce or higher. Leading predictions include JP Morgan at $5,055 per ounce, Goldman Sachs at $4,900 per ounce, UBS at $5,000-$5,400 per ounce, Bank of America at $5,000 per ounce, and Citi at $5,000-$6,000 per ounce.

For investors, YLG recommends a DCA strategy for long-term holdings, while also considering short-term investments. Key support and resistance levels are identified, with a focus on the potential target range of $4,900-$5,000 per ounce this year.

Additionally, YLG suggests futures investment products as an alternative during high gold prices, offering a promotion with discounts on gold and TFEX stock commissions. This includes reduced commission fees for various contracts and the ability to open online accounts without NDID verification fees.

YLG Futures provides comprehensive trading tools and 24/7 support, enhancing investor capabilities and offering flexibility for profit generation.