Domestic gold prices in Taiwan are seeing record highs due to unfavorable currency exchange rates and fears over the conflict between Israel and the militant Palestinian group Hamas.
International gold prices hit US$1,970 per ounce on Friday, the highest value since the COVID-19 pandemic. DBS Bank Wealth Management Investment Advisory Department Vice President Chen Yu-chia (陳昱嘉) says that the Israel-Hamas war is fueling the rise in worldwide gold prices. Chen points out that since the U.S. dollar is expected to drop in 2024 and the price of gold and the U.S. dollar are inversely related, gold could reach US$2,050 per ounce within the next 12 months. This will closely approach the high point of US$2,072 per ounce in August 2020, when the COVID-19 epidemic was at its peak.
Taipei Jeweler’s Association spokesperson Shih Wen-hsin (石文信) says that because the current exchange rate sits at NT$32.35 for US$1, domestic gold prices in Taiwan are at a record high. Shih said he expects Taiwan will see a wave of selling next week, as the temptation of profits will exceed people’s desire to hold onto gold as a long-term stable investment item.