Gold rallies to more than 8-year high

Gold rallies to more than 8-year high

Gold prices in Thailand have risen in line with the global jump. (Photo by Apichart Jinakul)
Gold prices in Thailand have risen in line with the global jump. (Photo by Apichart Jinakul)

The price of gold has rallied past the US$1,800 per ounce threshold, the highest in 8.5 years, as investors continue to seek refuge in the precious metal against the backdrop of persistent global Covid-19 infections.

The local gold price has also climbed to 26,550 baht per one-baht weight gold for bullion with 96.5% purity.

Holdings in gold-backed exchange traded funds rose to 3,234.6 tonnes on Tuesday, according to initial data compiled by Bloomberg.

Ultra-low interest rates and monetary stimulus by central banks across the globe have contributed to a gold rally as the virus uncertainty keeps investor confidence at bay.

Tanarat Pasawongse, chief executive officer at Hua Seng Heng Group of Companies, said the second wave outbreak of Covid-19, the progress of vaccine development and the US-China trade dispute are the key factors affecting the movement of gold price going forward. 

The next resistance line is $1830 per ounce, with the support line expected at $1,755, said Mr Tanarat.

The competitive vaccine development between China and the US could make investors sell their gold holdings for profit if the development stage becomes clearer, said YLG Bullion International in its note.


Do you like the content of this article?
COMMENT (2)

Arnon calls for massive, protracted rally to demand charter changes

KHON KAEN: Democracy activist Arnon Nampha has called for a massive and protracted street rally in mid-October to apply pressure on the government for constitutional amendments.

11:33

Govt’s struggle to deploy fiscal spending weighs on outlook

Fiscal policy is back in focus in Thailand as the central bank runs out of conventional monetary policy space to spur the economy.

10:47

Virus cases in hard-hit Australian state reach lowest in months

MELBOURNE: Five million residents in Australia's second-biggest city emerged from an almost two-month overnight curfew on Monday as just five new coronavirus cases were recorded in worst-hit Victoria state.

10:45