Reporters reported this Gold Merchants Association announces gold trading prices on October 20. When the market opens, prices are still reaching all-time highs. Gold bullion per gold baht was sold at 34,050 baht, an increase of 450 baht from the previous day, and gold bars were purchased at 33,950 baht. As for the prices of gold jewelry, the selling price was 34,550 baht and the buying price was 33,336.84 baht. Throughout the day, the price of gold moved 5 times to stand at the price of gold bullion, selling at 34,250 baht, buying at 34,150 baht, and gold jewelry selling at 34,250 baht. 34,750 baht, buying at 33,533.92 baht, while the price of gold on the global market (Gold Spot) is US$1,979 per ounce.
Gold prices continued to rise sharply due to tensions in the Middle East, said Mr Thanarath Phasaong, chief service officer of Hwa Seng Heng Gold Futures Co., Ltd. There is a tendency for violence to escalate. Leading to an outflow of money from risky assets buying gold as a safe asset, the head of the US Federal Reserve stated that the Fed is committed to controlling inflation within the 2% target, while the SPDR fund holds gold as before.
Given the trend in gold prices, there is an opportunity for a rally to test the important resistance level at USD 1,980 per ounce. But it may be subject to pressure to sell to make a profit. At this time, there is starting to be a strong selling force to make a profit. Investors need to closely monitor the situation in the Middle East.
The reporter further reported that on the same day (October 20), the Thai stock market came under intense selling pressure. The index fell sharply throughout the day. Before closing at 1,399.35, down 23.69 points, the index recorded a new low in almost 3 years with a trading value of 52,983.02 million baht, and foreign investors sold a net amount of 1,215.31 million baht, with the Thai stock market index declining in the same direction. Also, the stock market is everywhere
Mr. Natavon Khamtakroya, Director of Analysis Yuanta Securities (Thailand) Co., Ltd. said it witnessed strong selling of stocks to reduce risks due to concerns about the Israeli war. While there is still no power to buy shares from investors. Because investors still do not dare. Causing large stock prices to flow continuously because the state of war is still ongoing and may be very prolonged, while US bond yields are still rising high. Although the Fed sent a signal to keep interest rates steady it reflects that investors are still more concerned about the economy.
Mr. Pakorn Pitatawachai, Director and Director of the Stock Exchange of Thailand, said that the Thai stock market in general, which declined sharply during this period, is moving in the same direction as stock markets around the world. There are major pressure factors resulting from the conflicts in the Middle East affecting the rise in oil prices in the global market, which affects inflation and interest rates in the United States to remain stable at a high level. It has an impact on investments around the world.
However, the important factor that will push the Thai stock market to shine is that all parties, including the market, government and private sectors, should provide more information to foreign investors, and it can be seen that the government sector nowadays has recognized the importance of providing economic and investment information. . At the end of November 2023, the government sector will begin a roadshow to provide information to fund managers. and major foreign institutional investors in Singapore
“Public and private stock exchanges must work together to build investor confidence to understand the fundamentals and strengths of the Thai economy and stock market. To attract foreign investment back to invest.”
Mr. Fakorn also mentioned and added that the issue of energy prices being affected by war or violence in the Middle East does not have a negative impact on all listed industries or companies. There are only some groups. Investors should consider this information carefully. Given current information change quickly and it can be a good investment opportunity as well.
“We need to look carefully at the data on the impact of energy prices to see what positive or negative impacts it has on listed companies in Thailand. Which companies will be affected? While some companies will benefit, so I would leave investors to carefully analyze each “Aside. Because it may be a good investment opportunity in some businesses.”
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