YLG Bullion and Futures Public Company LimitedPrivate± Mixed
relevance
YLG assesses that gold demand over the next 12 months will remain strong, supported mainly by purchases from central banks worldwide, even though gold prices are still in a short-term correction phase. YLG Chief Executive Officer Thipa Navawatthanasap disclosed that China's measure requiring major commercial banks to stop acting as agents for paper gold trading for retail clients has only a minor impact on the market, because trading volume through agents accounts for just 4.88 percent of gold on the Shanghai Gold Exchange, and new retail client accounts have been suspended since late 2020. Moreover, the policy aims to shift behaviour from speculation to saving in physical gold, which will support prices in the long term through supply and demand mechanisms. Meanwhile, the World Gold Council states that central banks globally have bought an average of as much as one thousand tonnes of gold per year over the past four years, and 89 percent of central banks expect gold reserve volumes to increase in the next 12 months. Chinese customs reported gold imports in June of about 173 tonnes, the highest in two years, reflecting still-strong demand. YLG assesses short-term support at three thousand nine hundred and sixty and three thousand eight hundred dollars per ounce, and medium-term resistance at four thousand four hundred and four thousand nine hundred dollars per ounce. For the long term, it views that gold can still rise for another 16 years according to the Elliott Wave supercycle.