Bangkok Post
Gold dips amid renewed Mideast conflict
Compiled by KHAO Editorial — aggregated from 1 outlet. See llms.txt for citation guidance.
◌ Single Source
Renewed hostility between the US and Iran, which has caused oil prices to remain elevated longer than expected, has triggered a fresh downturn in gold prices, potentially dipping to US$3,500-3,600 an ounce or 60,000 baht per baht-weight domestically, says Kritcharat Hirunyasiri, chairman of MTS Gold.
Key facts
- Renewed hostility between the US and Iran, which has caused oil prices to remain elevated longer than expected, has triggered a fresh downturn in gold prices, potentially dipping to US$3,500-3,600 an ounce or 60,000 baht per baht-weight
- Bullion plunged to $4,022 an ounce on Thursday, the lowest since Nov 21, before rebounding to $4,089 later in the day, down 0.5% from the previous session
- Over the past 30 days, gold was down 12.5%.
- The prolonged Middle East conflict and elevated oil prices have wrongfooted all previous predictions for gold prices and the global economy,"
- MTS Gold, one of Thailand's top three gold traders, forecasts the gold price support range at $3,500-3,600 an ounce.
- Hua Seng Heng, Thailand's largest gold trader, predicts the next price resistance level at $4,115 an ounce.
Summary
"The prolonged Middle East conflict and elevated oil prices have wrongfooted all previous predictions for gold prices and the global economy," he told the Bangkok Post, adding renewed attacks in Iran, especially those on oil fields, are causing a greater impact on oil prices than during the onset of Russia's war with Ukraine.
According to Mr Kritcharat, the longer oil prices are elevated, the higher the probability the Federal Reserve will hike interest rates.