Downturn could last until end of the year
A gold vendor displays gold necklaces at a branch of Jin Hua Heng gold shop in Bangkok's Chinatown area. (Photo: Nutthawat Wichieanbut)
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."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.
The market predicts a Fed rate hike over the next three months, he noted.
