Gold steady at B21,950

Gold prices were unchanged at 21,950 baht per baht-weight in Bangkok on Saturday.

The Gold Traders Association announced the buying price at 21,850 baht and the selling price at 21,950 baht per baht-weight for bullion.

For ornaments, the buying and selling prices were 21,451.40 baht and 22,450 baht per baht-weight respectively.

The local prices changed four times on Friday for a net gain of 50 baht per baht-weight from the previous day.

Bloomberg reported from London on Saturday gold headed for its first back-to-back weekly decline since May as gains in equity markets and the dollar sapped demand for the metal as a store of value.

The S&P 500 Index is on the verge of a fourth weekly advance, the longest run in four months, amid signs of a strengthening US economy and speculation that central banks will act to cushion the fallout from the UK’s vote to leave the European Union.

The world needs fiscal, monetary and structural measures, International Monetary Fund managing director Christine Lagarde said Friday in Beijing.

Gold has pared this year’s rally as traders begin to price in increasing odds of a US rate increase this year. Higher borrowing costs reduce the appeal of precious metals because they don’t offer yields. Federal Reserve policy makers will meet next week.

“With continued equities strength and some additional dollar strength, we saw traders book profits in precious metals, mainly gold and silver,” Phil Streible, a senior commodity strategist at RJO Futures in Chicago, said in a telephone interview. “People are starting to think that thoughts of an interest-rate hike in the US are working their way back into some of the Fed officials’ talks.”

Bullion for immediate delivery fell 0.6% to $1,323 an ounce at 1.54pm in New York, set for a 1.1% loss this week, according to Bloomberg generic pricing. Gold futures for August delivery slipped 0.6% to settle at $1,323.40.

Holdings in gold-backed exchange-traded funds fell 1.05 tonnes to 2,004.4 tonnes on Thursday, data compiled by Bloomberg show.