Gold rises B150 to B21,600 as Brexit nears

Gold prices continued to rise, up 150 baht to 21,600 baht per baht-weight in Bangkok on Saturday.

The Gold Traders Association announced the buying price at 21,500 baht and the selling price at 21,600 baht per baht-weight for bullion.

For ornaments, the buying and selling prices were 21,117.88 baht and 22,100 baht per baht-weight respectively.

The prices changed three times on Friday for a total loss of 300 baht from Thursday.

Bloomberg reported from New York on Saturday gold prices posted a third straight weekly gain, and at least one measure shows that the rally may still have further to run.

Open interest, a tally of outstanding contracts in Comex futures, rose to the highest in almost a month. The debate over whether the UK should exit from the European Union has dominated trader discussions, boosting demand for haven assets. Gold prices touched the highest in almost two years on Thursday, before a halt in campaigning on the UK vote eroded gains.

The metal has jumped 22% this year, fuelled by speculation that interest rates in the US will remain lower for longer. Global central bankers have sounded alarms over risks to economies from Brexit, and the Federal Reserve signalled Wednesday that fewer officials expect the central bank to raise rates more than once this year. Low rates are a boon for bullion, which doesn’t offer yields.

“Gold was rallying before Brexit became a significant possibility, and should continue to do so,” said Tai Wong, director of commodity products trading at BMO Capital Markets in New York.

Gold futures for August delivery lost 0.3% to settle at $1,294.80 an ounce at 1.43pm on the Comex in New York. Prices pared gains Thursday after the killing of a UK lawmaker fuelled speculation the nation’s voters will more likely favour remaining in the EU. The metal climbed 1.5% this week in the longest rally in four months.

Holdings in exchange-traded funds backed by gold rose for a 13th day. Assets increased 4.2 tonnes to 1,887 tonnes as of Thursday, the highest since October 2013, data compiled by Bloomberg show.