Bangkok: Beliefs are growing that the conflict in the Middle East is likely to escalate, prompting holders of gold and stocks to closely monitor price changes.
According to Thai News Agency, the Rakchart Party anticipates that the conflict, involving key players such as the United States, Israel, and Iran, is likely to expand. Mr. Ekpittaya Eiamkong-ek, who leads the economic policy team of the Rak Chart Party, has expressed concerns over the escalating tensions, which could evolve into a prolonged regional crisis.
Mr. Eiamkong-ek highlighted the potential for a domino effect triggered by Israeli attacks on key Iranian locations, coupled with US claims of targeting high-ranking Iranian leaders. He pointed out that while some might believe Iran faces internal challenges, conservative forces within the country still maintain a strong support base. The risk is particularly acute if retaliatory strikes target military bases in the region, potentially drawing US forces stationed in neighboring countries into the conflict, thereby widening its scope beyond a simple US-Israel-Iran affair.
Global gold prices have surged in response to the crisis, with the market closing at $5,278 per ounce. Mr. Eiamkong-ek noted that this marks a clear buying opportunity, with the possibility of prices reaching $5,500 to $5,600 per ounce soon. The situation could significantly impact Thailand, possibly driving gold prices in the country back to 80,000 baht per ounce. However, he cautioned that while some advocate for immediate purchases anticipating continued price hikes, the end of the conflict could reverse trends, suggesting a cautious approach targeting the 80,000 baht mark.
In the Thai stock market, a wave of profit-taking is expected despite a previously positive trend that saw an increase of nearly 500 points since the third quarter of last year. The rising tensions have affected energy-related stocks like PTT, refineries, and Thai Oil positively, but the overall market impact remains negative. Tech stocks have particularly felt the pressure, with international markets seeing declines such as Nvidia's 5% drop over two days, signaling potential declines for companies like Delta. The market faces the risk of a sharp downturn, underscoring the need for investors in gold or stocks to stay vigilant.