Gold prices steady at B19,150

Gold prices were unchanged at its opening on Saturday.

The Gold Traders Association announced the buying price at 19,050 baht and the selling price at 19,150 baht per baht-weight for gold bars.

For ornaments, the buying and selling prices were 18,768.08 baht and 19,550 baht per baht-weight respectively.

The prices changed five times on Friday, ending down 50 baht from the previous day.

In world markets, Bloomberg reported from New York gold futures fell as rising US consumer prices signalled an approach to the Federal Reserve's inflation target, boosting prospects for the first interest-rate increase since 2006.

The cost of living excluding food and fuel rose at a faster pace than expected in April, government data showed on Friday. Fed policy makers have indicated they are watching inflation and the job market to help determine when to lift borrowing costs. The dollar extended a rally against a basket of 10 currencies after Fed Reserve chair Janet Yellen said she expects a rate increase this year if the economy meets her forecasts.

"Even though it was not a big jump in inflation, it was enough to bring back the rate anxiety," Frank Lesh, a trader at FuturePath Trading in Chicago, said. "You saw an immediate reaction in dollar, and the strength was a headwind for gold."

On the Comex in New York, gold futures fell less than 0.1% to settle at $1,204 an ounce at 1.49pm. The metal declined 1.7% this week.

Higher rates drive investors to favour assets that pay interest, including new bonds, curbing the appeal of gold, which generally offers returns only through price gains.

Gradual pace

Mrs Yellen spoke on Friday to the Greater Providence Chamber of Commerce in Providence, Rhode Island. She said she expects a gradual pace of tightening to follow the rate increase.

"The market is still trying to understand if the remarks were more hawkish or dovish," Tai Wong, the director of commodity products trading at BMO Capital Markets Corp in New York, said in a telephone interview. "Yellen says that a rate increase could be 'appropriate' this year, but tempers with several contingent conditions."

Holdings in exchange-traded funds backed by gold headed for the third straight weekly drop, according to data compiled by Bloomberg.

Gold jumped 3.1% last week, partly on speculation that a faltering economic recovery would spur the Fed to keep borrowing costs close to a record low. The central bank's benchmark rate has been near 0% since 2008.