Gold Prices Dip Slightly During Chinese New year 2025
As the Chinese New Year festivities unfolded in 2025, the gold market experienced a slight decline in prices.According to the latest report from the Gold Trade Association, the price of gold on January 28, 2025, saw two adjustments, dropping by 50 baht per baht of gold. Gold bars were priced at 43,900 baht for buying and 44,000 baht for selling, while gold jewelry was bought at 43,115.040 baht and sold at 44,500 baht. The Gold Spot price stood at 2,741 baht per troy ounce, with the exchange rate at 33.92 baht per US dollar.
This year’s trend aligns with historical patterns observed during the Chinese New Year. YLG Bullion International Company Limited (YLG) analyzed Gold Spot price statistics from 2020 to 2024, revealing that six weeks before the festival, prices decreased twice. During the chinese New Year itself, prices dropped four times and increased only onc.
Khun Pawan Nawawattanasap, CEO of YLG, noted that the gold market in asia remains vibrant during this period. “Gold is often used as a gift during the Chinese New Year,” he explained. “Although prices tend to rise in the month leading up to the festival, they often dip during the celebrations, especially with the closure of the gold market in China during the Golden Week holiday. This creates a buying prospect for investors.”
The bustling activity in the gold market during this time reflects its cultural significance in Asia.Despite the slight dip, the long-term outlook for gold remains positive, with manny viewing the festival period as an ideal time to invest.
Key gold Price Trends During Chinese New Year (2020-2024)
| Period | Price Movement |
|————————–|——————–|
| 6 Weeks Before Festival | Decreased 2 times |
| During Festival | Decreased 4 times |
| During Festival | Increased 1 time |
As the Chinese New Year continues to influence gold prices, investors and consumers alike are keeping a close eye on the market for opportunities to buy or sell. The slight dip in 2025 serves as a reminder of the cyclical nature of gold prices during this festive season.
gold Price in 2025: A Thorough Outlook and Investment Strategy
The gold price in 2025 is poised to reach unprecedented heights, with experts predicting a potential surge to 50,000 baht per baht in Thailand and $3,000 per troy ounce globally. This forecast,shared by Warut Rungkam,Director of Analysis at YLG Bullion and Futures,highlights the key factors driving gold’s upward trajectory and offers valuable insights for investors.
Key Drivers of Gold Price in 2025
Central Bank Purchases and Economic Uncertainty
One of the primary catalysts for the gold price in 2025 is the continued accumulation of gold by central banks. this trend, coupled with global economic volatility, notably in the United States, is expected to bolster demand for gold. Warut notes that Donald Trump’s policies, if re-elected, could lead to increased import tariffs, potentially driving inflation and further supporting gold prices.
Federal Reserve’s Interest Rate Policy
The Federal reserve (Fed) plays a crucial role in shaping gold’s future. YLG anticipates that the Fed will maintain its current policy interest rates in the near term, with potential rate cuts expected in the latter half of the year. However, if inflation trends higher than anticipated, the Fed may delay rate reductions, impacting gold prices.
US-China Technology War
Another critical factor to monitor is the escalating technology war between the US and China. The recent launch of China’s DEESSEEK AI, which offers cost-effective and rapid AI chatbot development, could reignite trade tensions. Warut warns that a full-blown trade war could lead to higher inflation and interest rates, considerably influencing gold prices.
Gold Investment Strategy for 2025
Diversification and Risk Management
Warut emphasizes the importance of including gold in investment portfolios to mitigate risks and enhance returns.According to the World Gold Council, allocating 5-7% of a portfolio to gold can improve overall performance compared to portfolios without gold exposure.
Support and Resistance Levels
For investors looking to capitalize on gold’s potential, understanding key support and resistance levels is essential. The Gold Spot price is expected to find support between $2,655 and $2,703 per troy ounce, while resistance levels are projected at $2,790 to $2,800. In Thailand, gold prices are anticipated to range between 42,800 and 43,500 baht per baht for support and 45,000 to 46,000 baht per baht for resistance.
Historical Trends and Seasonal Patterns
Chinese New Year Influence
Historical data reveals that gold prices tend to rise in the month leading up to the Chinese New Year. This year, despite a slight dip during the Golden Week holiday, prices are expected to rebound shortly after the Chinese market reopens. over the past decade, gold prices have increased in 6 out of 10 years during this period, with 7 out of 10 years seeing a recovery within three days post-holiday.
Summary of Key Predictions
| Metric | 2025 Forecast |
|————————–|—————————————|
| Thai Gold Price | Up to 50,000 baht per baht |
| Global Gold Spot price | Up to $3,000 per troy ounce |
| Support Levels (Spot) | $2,655 – $2,703 per troy ounce |
| Resistance Levels (Spot) | $2,790 – $2,800 per troy ounce |
| support Levels (Thai) | 42,800 – 43,500 baht per baht |
| Resistance Levels (Thai) | 45,000 – 46,000 baht per baht |
Conclusion
The gold price in 2025 is set to make significant strides, driven by central bank purchases, economic uncertainty, and geopolitical tensions. Investors are advised to incorporate gold into their portfolios to diversify risk and capitalize on its potential growth. By understanding key support and resistance levels and monitoring global economic developments, investors can make informed decisions to maximize their returns in the coming year.For more insights on gold investment strategies, visit YLG Bullion and Futures and stay updated with the latest market trends.Gold prices have surged to unprecedented levels in 2024,marking the third consecutive year of record highs. The global gold spot price has reached $2,790 per troy ounce, while domestic gold prices in thailand have soared to 44,450 baht per baht. This remarkable performance underscores gold’s enduring appeal as a safe-haven asset amidst economic uncertainties.
Key Highlights of Gold Performance in 2024
| Metric | Domestic Gold | Gold Spot Price |
|————————–|——————-|———————|
| Highest Price | 44,450 baht/baht | $2,790/troy ounce |
| Year-to-Date Return | +26% | +27% |
| Low-to-High Increase | +40% | +33.13% |
Domestic Gold vs. Global Gold Spot prices
Domestic gold prices in thailand have shown a robust increase of 26% year-to-date, closely mirroring the 27% rise in the global gold spot price. However, when examining the price movement from the lowest to the highest points, domestic gold has outperformed with a 40% surge compared to the 33.13% increase in the gold spot price. This disparity highlights the unique market dynamics influencing local gold prices.
Factors Driving the Gold Rally
Several factors have contributed to the sustained rally in gold prices. Economic instability,geopolitical tensions,and inflationary pressures have driven investors towards gold as a reliable store of value. The consistent demand for gold, both in physical and investment forms, has further bolstered its price trajectory.
Future Outlook
As gold continues to break records,analysts remain optimistic about its future performance. The ongoing economic uncertainties and the metal’s intrinsic value suggest that gold will remain a preferred asset for investors seeking stability. Weather you’re a seasoned investor or a newcomer, understanding these trends can help you make informed decisions in the gold market.
For more insights into gold investment strategies, explore our comprehensive guide on gold investment strategies. Stay updated with the latest market trends and make the most of your investments.