On June 16, at 9:03 a.m., the Gold Traders Association reported a sharp ฿400 increase in domestic gold prices from Saturday, June 14. Gold bars were priced at ฿52,950 per baht weight and gold ornaments at ฿53,750. However, prices adjusted downward three times throughout the day, each by ฿50.
The association attributed the rise to sustained buying of gold as a safe-haven asset amid escalating conflict between Israel and Iran, now in its third day. Global spot gold prices climbed to $3,439 per ounce as tensions intensified following unexpected Israeli airstrikes across Iran on Friday. Iran retaliated with missile attacks, some of which penetrated Israel’s air defenses and struck buildings in central Israel.
The air conflict continues with no signs of de-escalation from either side, suggesting a prolonged standoff.
Economic data to watch in the U.S. today includes the New York manufacturing index for June, expected to drop to -8.10 from -9.20 in May.
This week’s economic highlights include the U.S. Federal Reserve’s FOMC meeting on June 17–18, where interest rates are expected to be held steady at 4.25–4.50%. Other data to monitor include retail sales, industrial production, building permits, housing starts, jobless claims, the Philadelphia Fed manufacturing index, and the leading economic index for June.
Also of note are upcoming meetings of the Bank of England (BoE) and the Bank of Japan (BoJ).
Domestic gold prices have now surged by ฿1,100 over the past week, peaking at ฿52,700. The Thai baht is currently trading around ฿32.50 per U.S. dollar.