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Hua Seng Heng forecasts gold price surge, benefiting its business.
Hua Seng Heng forecasts gold prices to surge to $4,900-5,000 per ounce this year, or Thai gold prices around 74,000-75,000 baht per baht weight, after prices broke through the key resistance at $4,500-4,515, which is the 200-day moving average, turning the medium-to-long-term trend positive. Supporting factors include the U.S. Treasury increasing the maximum size of long-duration bond buybacks per operation from $2 billion to at least $4 billion, covering 10-20 year and 20-30 year maturities, from September 9 to November 4, 2026. Meanwhile, U.S. government debt surpassed $40 trillion for the first time, which may pressure gold in the short term via bond yields but serves as a structural support in the long run. Additionally, central bank buying remains strong, with net purchases of 289 tonnes in Q2, up 62% year-on-year, and gold ETFs saw net inflows of about $3 billion in July, increasing holdings by 23 tonnes to 4,068 tonnes. The market is watching the Jackson Hole symposium from August 27-29 for signals on the Fed's rate direction ahead of the September FOMC meeting. Hua Seng Heng advises investors to be cautious of short-term profit-taking and views pullbacks as accumulation opportunities if the price structure maintains the uptrend.
Hua Seng Heng forecasts gold price surge, benefiting its business.