Gold glitters as Russia-Ukraine conflict sends prices rising

Many consider the metal a safe asset.

The Nation

The Nation



A military conflict between Russia and neighbouring Ukraine is boosting demand for gold, which is considered a safe-haven asset.

February 24, 2022

BANGKOK – In global markets, the price of the precious metal is likely to touch the benchmark of US$2,000 (THB64,575) an ounce if the situation worsens, with domestic prices expected to test the range of 30,450-30,650 baht per baht weight, said Siriluck Pakotiprapha, vice president of Hua Seng Heng Gold Futures’ Research Department.

She said domestic gold prices have been on the increase after price hikes in the world market.

Russia’s invasion has led to many investors offloading their risky assets to purchase gold, which is considered a safe-haven investment, she added.

Global gold prices per ounce have outshone the $1,950 level, the highest in nine months, with domestic prices seeing a series of fluctuations on Thursday alone. At 11.45am, for instance, the price of a gold bar was 29,650 baht per baht weight, while gold jewellery cost 30,150 baht.

Siriluck said that if the situation worsened and expanded into a full-blown conflict between Russia and Ukraine’s Western allies, the global gold price could hit $2,000 an ounce.

If that benchmark is reached, domestic gold prices could rise to test the barrier of 30,450-30,650 baht, under the assumption that the Thai currency ranges from 32.20-32.40 per dollar.

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