Gold price climbs to record high, boosted by safe-haven demand and central bank purchases

Gold hits record high again, safe-haven sentiment dominates market

On July 25, 2026, international spot gold prices broke through the $2,500 per ounce mark during Asian trading hours, reaching a high of $2,512.30, setting a new record. Silver prices also rose, briefly surpassing $35 per ounce, the highest since 2020. This strong rally is mainly driven by global economic uncertainty, major central banks shifting toward accommodative monetary policy, and ongoing geopolitical tensions.

Multiple factors pushing gold prices higher

Deepening concerns over global economic slowdown

Recently released economic data shows that growth momentum in major economies such as the United States, the Eurozone, and China is weakening. The US second-quarter GDP initial annualized rate was only 1.8%, below the market expectation of 2.2%; the Eurozone manufacturing PMI has been in contraction territory for four consecutive months; China's real estate market remains sluggish and consumption recovery is weak. These factors have prompted investors to seek gold as a safe-haven asset.

Central banks aggressively buying gold

According to the latest report from the World Gold Council, global central banks' net gold purchases reached 483 tons in the first half of 2026, up 16% year-on-year. Among them, the People's Bank of China increased its gold reserves for the ninth consecutive month, reaching 2,280 tons by the end of June; central banks in Poland, India, Kazakhstan and others also continued buying. Central bank purchases have provided solid bottom support for gold prices.

Geopolitical risks escalating

The situation in the Middle East remains tense, the Russia-Ukraine conflict shows no sign of easing, and friction between the US and China in technology and trade has intensified, significantly raising geopolitical uncertainty. These risk events have further stimulated safe-haven demand for gold.

Overall strength in precious metals market

• Gold: Spot gold has gained 28% year-to-date, far exceeding other major asset classes. Analysts believe gold prices may test the $2,550 resistance level in the short term.
• Silver: Driven by industrial demand recovery (solar energy, new energy vehicles) and investment demand, silver prices have performed strongly. The gold-silver ratio has fallen from 85 to 71, indicating silver is beginning to catch up.
• Platinum: Platinum prices have followed gold higher, but the increase is relatively modest, currently around $1,100 per ounce. Growing demand for fuel cell vehicles provides long-term positive support for platinum.

How should Thai investors position themselves in precious metals?

For Thai investors, allocation to precious metals can serve as the safe-haven part of a portfolio. Currently, multiple gold ETFs are available for trading on the Stock Exchange of Thailand (SET), such as Thai Gold Futures ETF and MTS Gold Fund, providing convenient investment channels. In addition, investors can trade gold futures contracts through futures accounts. However, attention should be paid to short-term volatility risks, and medium-to-long-term holding is suitable.

The domestic gold price announced today (July 25) by the Gold Traders Association also increased following international prices, reaching 45,200 Thai baht per baht (15.2 grams), a record high. Local jewelers report an increase in gold sell-back volume, but buying sentiment remains strong.

Outlook and risk warnings

Most analysis institutions are optimistic about the gold outlook. Goldman Sachs raised its year-end gold price forecast to $2,700, citing the "de-dollarization" trend and continued central bank buying momentum. Citibank believes that if the US economy falls into recession, gold prices could rise to $3,000. However, investors still need to watch for risks such as Fed policy shifts, US dollar index rebound, and profit-taking pressure.

For Thai investors, it is recommended to monitor the correlation between gold and the Thai baht exchange rate. A stronger baht may weaken local gold price gains. At the same time, avoid blindly chasing highs; consider using a dollar-cost averaging or buying on pullbacks strategy.

Overall, against the backdrop of global macroeconomic uncertainty, gold's appeal as a safe-haven asset is unlikely to diminish in the short term, but investors should still allocate assets based on their own risk tolerance.

Disclaimer: This article is for reference only and does not constitute any investment advice. Investors should make their own judgments and bear risks.