The Gold Traders Association (GTA) has raised its outlook for global gold prices to US$2,250 per ounce by the end of this year, up from $2,100, as domestic prices rose to a record high of 36,700 baht per baht weight on Thursday morning.
GTA president Jitti Tangsithpakdi said the uptick is partially because people are continuing to buy, believing prices will increase further.
In many previous instances, people sell gold when prices rise to take profit, said Mr Jitti.
In addition, the central banks of many Asian countries, including China and Thailand, increased their gold purchases for international reserves, which is another factor propelling gold prices, he said.
The price of domestic gold bars rose 150 baht per baht weight on Thursday morning to 36,700 baht.
However, the price dipped 50 baht to 36,650 baht by midday.
Global prices edged down slightly yesterday, but rebounded to $2,170 per ounce by late afternoon thanks to a firmer US dollar and elevated Treasury yields, while traders awaited more US economic data that could steer hopes for a mid-year interest rate cut by the Federal Reserve.
"There is a possibility global gold prices could reach $2,250 per ounce by the end of the year. A price increase is most likely after the Fed starts cutting interest rates," said Mr Jitti.
The association maintained its domestic price forecast of 38,000 baht per baht weight for the third quarter because there are other factors at play, including the exchange rate, he said.
JPMorgan Chase & Co estimated gold prices could reach $2,500 an ounce this year after bullion posted an all-time high of $2,195.15 last Friday.
"We believe $2,500 is a possibility," head of the Global Commodities Strategy team Natasha Kaneva said in a Bloomberg TV interview.
To achieve that price target, "we need confirmation from continued moderation of inflation and the jobs numbers, as well as confirmation the Fed is indeed cutting rates," she said.
In related news, Bitcoin continued its rally, hitting a record of $73,803 yesterday as spot Bitcoin exchange-traded funds and optimism the Fed will cut interest rates this year have spurred the price of the largest cryptocurrency.