Gold rebounds B50 to B18,550

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

The Gold Traders Association announced the buying price at 18,450 baht and the selling price at 18,550 baht per baht-weight for gold bars.

For ornaments, the buying and selling prices were 18,176.84 baht and 18,950 baht per baht weight respectively.

The prices changed six times on Friday, indicating high volatility, ending down 200 baht from the previous day.

In world markets, Bloomberg reported from New York on Saturday the precious metal declined, ending the longest rally since 2012, as crude oil fell and investors exited funds backed by the metal.

Holdings in gold exchange-traded products fell on Thursday to 1,619.85 tonnes, the lowest since Jan 15. The drop in spot gold halts seven straight advances that came after Federal Reserve policy makers signalled they’re in no hurry to raise borrowing costs. Higher rates usually send investors to assets with better yield prospects such as equities and bonds.

Bullion pared gains from Thursday, when demand for haven assets climbed after Saudi Arabia and its allies bombed targets in Yemen. Oil prices slid on speculation that the strikes don’t pose a threat to global crude supplies. The dollar headed for the longest run of monthly advances since at least 1967 against a basket of six currencies, lowering demand for gold as an alternative investment.

“The safe-haven premium has come off today with no reports of increased violence,” Chris Gaffney, the senior market strategist at EverBank Wealth Management in St. Louis, said in a telephone interview. “The dollar strength will continue to be gold’s biggest enemy.”

Bullion for immediate delivery fell 0.4% to $1,200.13 an ounce at 2.30pm in New York, according to Bloomberg generic pricing. The metal climbed 4.8% during the seven-session rally.

Gold futures for June delivery declined 0.4% to settle at $1,200.70 on the Comex in New York, trimming the weekly advance to 1.4%. Aggregate trading was 81% higher than the average for the past 100 days for this time, according to data compiled by Bloomberg.

Atlanta Fed President Dennis Lockhart said on Thursday he still favours raising interest rates from mid-year onward despite some softer readings on growth.

The US economy expanded at a 2.2% annualised pace in the fourth quarter, matching the Commerce Department’s previous estimate, according to government figures issued Friday.