Sellers flocked to gold shops on Yaowarat Road in Bangkok and across the city as gold prices hit close to an eight-year high on Monday.
There were similar scenes last month when the price of gold ornaments with 96.5 percent purity rose to 26,450 baht. Today, however, gold prices hit 26,600 baht per weight for sellers.
The rise in gold price came as the US Federal Reserve Chairman offered extremely downbeat views on the potential recovery of the United States economy amid the coronavirus pandemic.
In the United States, gold prices reached $1,762.23 USD per ounce representing almost the highest value for gold in eight years.
It seems that investors quickly turned to the safe haven asset of gold following the remarks of Federal Reserve Chairman, Jerome Powell, with Tanarat Pasawongse, Chief Executive of Hua Seng Heng Group of Companies saying:
“The markets are still worried that it will take longer for the economy to recover and the second wave of covid-19 outbreak cannot be ruled out.”
A senior market analyst of Asia Pacific at Oanda Corporation feels that this is just the beginning of such price rises, saying:
“The amount of monetary policy easing, conventional and unconventional, cannot be ignored and unlike the global financial crisis 2008, in a post-covid-19 nationalized supply chain world, has the potential to generate inflation that has been missing in action for the past 20 years.”
Source: Bangkok Post