The conflict between the US and Iran is expected to be a prolonged one, and could lead to the gold price hitting US$1,600 per oz this week, the highest in six years, Gold Traders Association president Jitti Tangsitpakdee said on Monday (January 6).

“Investors are monitoring the situation closely. They are afraid the conflict will develop into World War III,” he said.

The appreciation of the baht currency between 0.40 and 0.50 decreased the price of gold in Thailand by around Bt300. “The baht has presently weakened slightly, causing the price this morning to rise by Bt350,” Jitti said.

The buying price for a baht of gold today (January 6) was Bt22,400, and 22,500 for selling. The buying price for gold ornaments was Bt21,997.16, and for selling Bt23,000.

On Friday, the Middle East situation heated up again after a US drone strike killed Iranian military leader Qasem Suleimani. Iran has vowed revenge and raised a red flag over the Holy Dome Jamkarān Mosque, signalling that a severe battle lay ahead.