Gold rallies to more than 8-year high
published : 8 Jul 2020 at 20:36
writer: Darana Chudasri
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.