Gold climbs B50 on weak US jobs data

Gold prices rose by 50 baht per baht weight at its opening on Saturday.

The Gold Traders Association announced the buying price at 18,500 baht and the selling price at 18,600 baht per baht-weight for gold bars.

For ornaments, the buying and selling prices were 18,237.48 baht and 19,000 baht per baht weight respectively.

The prices changed three times on Friday, ending up 100 baht from the previous day.

The association also announced it would close for the Songkran holiday between April 13-15. Most shops will be closed and prices will remain at these levels until the market opens again on Thursday. 

In world markets, Bloomberg reported from London and New York on Saturday that gold advanced for the first time in four days after holdings in exchange-traded products (ETPs) backed by bullion posted the largest increase in more than six weeks.

On Thursday, gold-backed ETP holdings rose by 3.9 tonnes, the most since Feb 23, to 1,620.1 tonnes, according to data compiled by Bloomberg. Holdings in the SPDR Gold Trust, the top bullion ETP, had the biggest jump in two months.

Gold futures had a fourth straight weekly increase, the longest rally since July, as investors assess economic data to determine when the Federal Reserve is likely to boost borrowing costs. Higher rates curb bullion’s appeal because it only offers returns through price gains. A government report last week showed US hiring cooled, giving support to the view that the Fed will delay increases.

The rebound in ETPs “is showing some movement out of the conventional assets into gold, as a holding point,” Stephen Platt, a futures strategist at Archer Financial in Chicago, said in a telephone interview. “Some of it, I suspect, is still a reflection of some of the expectations that rates will remain low and that the Fed will move slowly.”

Gold futures for June delivery increased 0.9% to settle at $1,204.60 an ounce at 1.46pm on the Comex in New York. The metal fell 2.1% in the prior three sessions.

ETP holdings increased by 21.7 tonnes so far this year after declining 164.4 tonnes in 2014, a second annual drop. The Bloomberg Dollar Spot Index, a gauge of the greenback’s strength against 10 major counterparts, climbed a second day, gaining 0.2%. Bullion typically moves inversely to the US currency.

The strong inflows on April 9 could be an indication that “investors are seeing value below $1,200,” Carsten Fritsch, an analyst at Commerzbank AG, said by phone from Frankfurt. “What is remarkable is that gold is advancing despite a stronger dollar.”