Gold hits 6-year high

Gold hits 6-year high

A gold trader picks out a necklace for a customer at his shop in Yaowarat, Bangkok. The price rose to a six-year-high on Monday, fuelled by investors' fears of a US-Iran war. (Photo by Pornprom Satrabhaya)
A gold trader picks out a necklace for a customer at his shop in Yaowarat, Bangkok. The price rose to a six-year-high on Monday, fuelled by investors' fears of a US-Iran war. (Photo by Pornprom Satrabhaya)

The price of gold rose to US$1,588 an ounce on Monday, a six-year high, and was expected to trend higher, as investors sought safety amid the heightening conflict between Iran and the United States.

Tipa Nawawattanasub, chief executive of YLG Bullion and Futures Co, said the tension between Iran and the US caused the local gold selling price to soar by 350 baht per baht weight to 22,500 baht for bullion and 23,000 baht for gold ornaments.

"This week the price could rise to $1,600 per ounce if retaliation between the two countries persists. It could  continue until the US presidential election in November 2020," she said.

Investors were buying gold as a safe asset, and gold sales naturally rise ahead of the Lunar New Year, Ms Tipa said.

"The gold price rose rapidly from $1,550 per ounce on Friday to $1,588 per ounce this morning. It may reach $1,600 per ounce this week. Analysts have changed their target price to $1,740 per ounce this year on the possibility that tension between Iran and the US grows," she said.

She advised buying gold when its price drops to $1,560-1,566 an ounce, but also warned the price could fall sharply on profit-taking if the Iran-US situation eases.

Jitti Tangsitthpakdi, president of the Gold Traders Association, set resistance at $1,600 an ounce and said investors were fearful of World War III.


Do you like the content of this article?
COMMENT (5)

Philippines, Vietnam brace for tropical storm Saudel

HANOI/MANILA: Authorities in Vietnam and the Philippines braced on Tuesday for a tropical storm that could bring flooding and landslides in both countries, as the death toll in Vietnam from weeks of adverse weather rose to 105, with dozens still missing.

16:23

Court asked to revoke state of emergency

The opposition Pheu Thai Party on Tuesday asked the Civil Court to annul Prime Minister Prayut Can-o-cha's order invoking a state of emergency and banning public gatherings in Bangkok, saying it violated people's rights.

16:07

Covid-19 case in Myanmar near border

KANCHANABURI: A woman in a village in Myanmar near the Three Pagodas border crossing in Sangkhlaburi district has been confirmed infected with Covid-19, according to an official report from Myanmar.

15:30