A severe Middle East escalation could prompt investors to sell gold alongside other holdings, YLG Bullion & Futures analyst Warut Rungkham said in comments reported by the Bangkok Post on Nov. 5, despite bullion’s safe-haven reputation.
Rungkham said investors feared President Donald Trump might intensify U.S. military action after Democrats won control of the House and Senate. He said Trump might also invoke emergency powers to maintain his grip on power. An extreme escalation, including a nuclear attack, could trigger broad selling across markets and pull gold lower, Rungkham warned.
The political shift could also limit the administration’s military options and help calm regional tensions, Rungkham said. YLG said easing tensions could cool oil prices and inflation, reduce pressure on interest rates and potentially help gold recover.
Gold was recently around $3,870 an ounce, while Thailand’s domestic price was 62,200 baht per baht-weight, the Bangkok Post reported. Rungkham identified support near $3,800 an ounce and resistance around $4,200. The scenario adds a political-risk angle to recent EconoTimes coverage of gold’s slide amid oil and rate concerns.
The World Gold Council reported net central-bank purchases of 321 tonnes in the third quarter of 2026, up 42% from a year earlier and the fastest pace since late 2024, according to the Bangkok Post. Year-to-date buying reached 675 tonnes, 6% above the level for the same period last year. The World Gold Council said reserve managers were mainly seeking to diversify portfolios and manage risk. Rungkham said central-bank purchases remained a longer-term source of support for gold.
