Strong dollar keeps gold prices steady

Gold prices were unchanged at 21,050 baht per baht-weight in Bangkok on Saturday.

The Gold Traders Association announced the buying price at 20,950 baht and the selling price at 21,050 baht per baht-weight for bullion.

For ornaments, the buying and selling prices were 20,572.12 baht and 21,550 baht per baht-weight respectively.

The local prices changed three times on Friday, ending unchanged from the previous day.

Reuters reported from New york and Istanbul gold prices were little changed on Friday as a strong dollar limited gains, but the precious metal notched its first weekly rise in four as seasonal demand from Asia kicked in.

Demand from Asia, including China, India and exchange-traded funds (ETFs), has helped prop up prices this week.

Spot gold was up 0.1% at $1,267.23 an ounce by 2.57pm. For the week, prices rose 1.4%, clawing back part of the 6.6% shed over the last three weeks. US gold futures ended the session up 0.02% at $1,267.70.

Demand from India is expected to remain elevated as festivals, including Dhanteras and Diwali, will be celebrated at the end of the month -- two of the most important Hindu festivals and a time when gold is traditionally given as a gift, Commerzbank analysts said. However, the dollar index, which measures the greenback against a basket of currencies, was up 0.4% at 98.734 after touching its highest since February on Friday.

Bullion has been hurt in recent weeks by the strength of the dollar, which has been helped by a slew of data indicating an improvement in the US economy that could justify an interest rate rise later this year.

Higher US interest rates increase the opportunity cost of holding non-yielding assets such as bullion and create a flight to investments that may offer higher returns.

"The market right now, and for the rest of the year, is still focused on the US interest rate hike. We mostly know it's likely to happen but we are looking at the economic signals ahead of it," Natixis precious metals analyst Bernard Dahdah said.

Holdings of the SPDR Gold Trust, the world's largest gold-backed ETF, rose 0.31% to 970.18 tonnes on Thursday.

SPDR holdings have risen 2.3% so far this month.

MKS PAMP Group said in a note that ETF inflows continued to support gold. "However, dollar strength is likely to weigh upon moves higher over the short term amid euro and pound weakness."

The euro hit a seven-month low against the dollar after the European Central Bank poured water on a tapering of its asset-buying programme, keeping the door open for more stimulus this year.