Gold prices rose nearly 14% in August, breaking through the $4,600 per ounce level, supported by a weaker dollar and uncertainty over U.S. fiscal and monetary policy. UBS estimates that gold has the potential to reach $5,000 in March 2027 and move to $5,200 by June 2027. Meanwhile, Thailand holds about 234.5 tonnes of gold, accounting for nearly 12% of its international reserves, in line with the global trend of central banks buying an average of about 1,000 tonnes of gold per year over the past four years, up from around 500 tonnes per year in the previous decade. Ray Dalio, founder of Bridgewater Associates, warned that the U.S. could face a debt crisis within 1-5 years and recommended allocating 10-15% of a portfolio to gold for diversification.
UBS Group AGUBS sets a bullish gold price target, which is positive for its commodities research and trading business.
Ray Dalio recommends gold allocation, which could boost demand for gold and benefit Bridgewater's gold holdings.
