BANGKOK, Jan 6 – The gold price reached its highest level in six years due to the conflict between Iran and the United States.
TipaNawawattanasub, chief executive officer of YLG Bullion and Futures Co, said the gold price rose to US$1,588 per ounce and caused the local selling price to increase by 350 baht per baht-weight to 22,500 baht for bullion and 23,000 baht for gold ornaments.
The global price could reach US$1,600 an ounce this week if the conflict between Iran and the US continued, she said. She also mentioned the speculation that China would postpone signing its trade deal with the US from Jan 15 and the upcoming Lunar New Year as additional factors to raise the gold price.
“The gold price rose very fast from US$1,550 per ounce on Friday to US$1,588 this morning… Analysts revised their gold price target for this year to US$1,740 per ounce in case that the Iran-US conflict escalates,” Miss Tipa said.
If the situation was relieved, investors should be prepared for fast profit-taking, she said.
JittiTangsitthpakdi, president of the Gold Traders Association, said investors were monitoring the Iran-US situation closely for fearing that it can grow to the third World War.
“The tension will continue and raise the gold price. The resistance is at US$1,600 an ounce,” he said. (TNA)